Borrowing power calculator

Use your income, living expenses, existing debts and deposit to estimate how much you could borrow. Start with figures from your payslips and statements. Open the assumptions below your result to see what the calculator includes.

Income

Lenders check the income they can verify and accept. Overtime, bonuses, commission and rent may be treated differently from regular wages.

Living expenses and HEM

Lenders review your spending and may compare it with a household benchmark such as the Household Expenditure Measure (HEM). Enter realistic expenses. A benchmark is not a suggested household budget.

Existing debts

Existing loan repayments reduce the income available for a new mortgage. Credit card limits can matter even when the balance is clear. Include the debts and commitments the calculator asks for.

The serviceability buffer

Banks assess repayments at a higher rate to allow for rate rises. This buffer affects the amount they assess you can repay. The assessment rate is separate from the rate charged on your loan.

APRA’s residential mortgage lending guidance explains these checks for banks. Individual lender policies and non-bank approaches can differ.

Try changing one input at a time. Compare your regular income, actual living costs and ongoing repayments. Check whether unused credit limits are affecting the result before deciding to reduce them.

Your deposit also changes the estimated purchase price. Keep money aside for buying costs. The deposit calculator can help you explore that part of your budget.

Before using savings to repay a debt, ask a broker to compare the effect on both your borrowing power and the cash left for your purchase.

This calculator uses a general model. It does not verify your documents, check your credit history or assess a property. Its range is not a lender offer or pre-approval.

The purchase estimate allows for modelled stamp duty, but it is not a complete buying-cost budget. It does not quote lenders mortgage insurance or include every legal, inspection and registration cost.

Choose a repayment you could comfortably manage alongside your other plans. Moneysmart’s home buying guide explains why your comfortable budget may be below a lender’s maximum.

Bring your estimate, deposit amount and a repayment you would feel comfortable with. A Hunter Galloway broker can check how lenders may assess your situation and explain the next step. The assessment is free and there is no obligation to apply.