Calculators
Find out how much you could borrow, based on your income, expenses and liabilities, at a lender-style assessment rate.
Estimates for planning only.
Estimated borrowing power
$426,101.00
Serviceable monthly income
$5,890.00
Total monthly expenses
$2,400.00
Monthly surplus
$3,490.00
Assessment rate
9.20%
Estimated monthly repayment
$2,609.74
How this estimate is calculated
Lenders assess your repayment ability at your rate plus a 3% buffer, currently 9.20%. After deducting monthly expenses of $2,400.00 and existing commitments, you have $3,490.00 a month left to service a new loan - that surplus is what caps the amount.
Borrowing power is the maximum loan amount a lender is likely to approve based on your income, living expenses and existing financial commitments. Lenders work backwards: they start with your after-tax income, subtract your expenses and debt repayments to find a monthly surplus, then calculate the largest loan that surplus can service. It is not a guarantee of approval - the property, your deposit, your credit history and lender-specific policy all play a part - but it is the most useful starting figure when you are budgeting for a purchase.
APRA requires lenders to assess your ability to repay at your contracted rate plus a buffer of at least three percentage points. The logic is straightforward: if rates rise after you take out the loan, you still need to be able to meet the repayments. The practical effect is that your borrowing power is calculated as though the loan costs more than it does today, which makes the estimate look conservative. That conservatism is intentional.
Lenders must satisfy themselves that your declared expenses are plausible. Where declared expenses fall below a statistical benchmark called the Household Expenditure Measure (HEM), many lenders use the HEM figure instead. This calculator pre-fills a benchmark amount in simple mode. If your actual living expenses are higher, enter the correct figure - understating expenses will overstate your borrowing power.
Yes, and often more than people expect. Because income tax is calculated per person, two incomes of $70,000 each produce more combined after-tax income than one income of $140,000 would. A joint application also gives lenders visibility of both people's financial positions, which means both applicants' expenses and liabilities are included. The net effect for most couples is meaningfully higher borrowing power than either could achieve alone.
Lenders treat your credit card limit, not your balance, as a monthly commitment. The standard assessment is around 3.8% of the total limit per month, regardless of whether you owe anything on the card. A $20,000 limit therefore reduces your assessed monthly surplus by around $760 even if the card is paid in full each month. Closing cards you do not use, or reducing their limits, is one of the most reliable ways to lift your borrowing power before you apply.
This calculator estimates serviceability only - how much a lender thinks you can repay. It does not assess deposit requirements, loan-to-value ratio (LVR), or lenders mortgage insurance (LMI), which typically applies when you borrow more than 80% of the property value. HELP and HECS-HELP repayment obligations are not deducted as a commitment, though lenders do account for them. Lender-specific credit policy, property type restrictions and individual credit assessment are also outside what this tool can model. Treat the result as a planning estimate and confirm with a broker before making any commitments.
Borrowing power is one side of the coin and the repayment is the other. Drop the amount into the mortgage calculator to see the weekly, fortnightly or monthly repayment at different rates and terms.
Open the mortgage calculatorSend your details and we'll come back to you with what these numbers mean for your borrowing, usually within one business day.
Estimated borrowing power
$426,101