Calculator
Borrowing power calculator.
Get a guide to how much you could borrow. For an accurate figure across 50+ lenders, book a free loan review.
Borrowing Power Calculator
Guide only. We apply a serviceability buffer and household allowances. Actual borrowing varies by lender.
Income (monthly, after tax)
Expenses & debts
Loan settings
Results remain hidden until you submit your details below.
Enter your details to see results on screen and receive a copy by email.
Enter detailsGuide only. Assumes: 80% rental income, 3.85%/mo of card limits, $400/mo per dependant, assessment rate = max(entered rate + 3.00%, 7.00%). Living-expense minimum varies by applicant count (1: $2,000; 2: $4,000).
How it works
How lenders work out your borrowing power.
Your borrowing power is the most a lender will let you borrow while still being confident you can make the repayments. Each lender works it out with its own formula, so the same application can produce very different numbers from one bank to the next.
In simple terms, the lender takes your income, subtracts your living costs, existing debts and a buffer for rate rises, and checks what is left over can cover the new loan. They also look at your deposit, credit history and the property you are buying.
What counts
What lenders look at.
- Income: salary, overtime, bonuses, rental income and business income, with some types discounted
- Living expenses: your declared spending or a benchmark, whichever is higher
- Debts: car loans, personal loans, HECS-HELP, buy now pay later and credit card limits
- Dependants: the number of people relying on your income
- Deposit and loan type: how much you put in and whether it is owner occupied or investment
Borrow more
Ways to increase how much you can borrow.
- Reduce or close credit cards you do not need
- Pay off small debts such as personal or car loans
- Show a steady savings history and tidy bank statements
- Choose a lender whose policy suits your income type
- Consider a longer loan term or a joint application
Watch out
What can reduce your borrowing power.
- High credit card limits, even with a zero balance
- Buy now pay later accounts and missed repayments
- A new job still on probation, or recent gaps in work
- Large regular spending showing in your statements
- Applying with several lenders at once, which adds credit enquiries
Buying your first home? Government schemes can help you buy sooner with a smaller deposit.
Questions
Borrowing power questions, answered.
How much can I borrow on my income?
It depends on more than income. Lenders look at your living expenses, existing debts, credit card limits, dependants, deposit and the loan type. Two people on the same salary can get very different results, which is why we compare lenders for your exact situation.
Why do lenders assess me at a higher rate than the actual rate?
Lenders must check you could still afford the loan if rates rose, so they add a serviceability buffer, typically around three percentage points, on top of the actual rate. That is a big reason the amount you can borrow is lower than you might expect.
Do credit card limits reduce my borrowing power?
Yes. Lenders count a share of your total credit card limit as a monthly commitment, even if you pay the card off in full. Reducing or closing cards you do not use is one of the quickest ways to lift your borrowing power.
Is the result the same as pre-approval?
No. The calculator is a guide. Pre-approval is a lender’s conditional agreement to lend based on your verified documents. We recommend getting pre-approval before you make an offer or bid at auction.
Can self-employed people borrow as much?
Often, yes. Most lenders want two years of tax returns, but some will assess one year or use BAS and accountant letters. See our alt doc loan page if your income is harder to document.
Want an exact figure?
Calculators give a guide only. Every lender assesses differently. Book a free loan review and we will compare 50+ lenders for your real numbers.