Our Borrowing Power Calculator helps you estimate how much you can borrow based on your income, expenses, and financial situation. This tool provides insights into the loan amount you may be eligible for, helping you plan your financial journey with confidence.
Add your monthly income, any joint income, and
any additional income you may have.
Include your living expenses, loan repayments, and any other financial obligations.
Specify the loan interest rate and term to calculate your repayment options.
The calculator will show how much you can borrow, along with the monthly, fortnightly, and weekly repayment amounts.
The borrowing power calculator provides a useful estimate based on the information you enter, but it is not a loan approval.
Each lender uses its own assessment method and considers factors such as your income, living expenses, existing debts, credit limits, dependants and credit history.
Lenders may also assess your repayments using an interest rate higher than the advertised rate to check whether you could manage future rate increases.
A mortgage broker can complete a more detailed assessment using your supporting documents and current lender policies.
Include your regular household and lifestyle expenses, such as rent or existing mortgage repayments, groceries, utilities, transport, insurance, healthcare, childcare, education, subscriptions and entertainment.
You should also include repayments for personal loans, car loans, student debts, buy now, pay later accounts and other financial commitments.
Credit card limits should be disclosed even if the balance is currently zero, as lenders may include the available limit when assessing your borrowing capacity.
Yes. You can adjust the interest rate and loan term in the calculator to compare different scenarios.
A higher interest rate will generally increase repayments and may reduce your estimated borrowing power.
A longer loan term may reduce the regular repayment amount, but it can increase the total interest paid over the life of the loan.
Your actual loan term and assessment rate will depend on the lender, loan product and your circumstances.
You may be able to improve your borrowing power by reducing existing debts, lowering or closing unused credit card limits and avoiding unnecessary new credit applications.
Reviewing your regular expenses and maintaining stable, verifiable income may also help.
Because lenders assess income and commitments differently, comparing suitable lenders can make a meaningful difference.
Before making changes, speak with a mortgage broker to identify which commitments are having the greatest effect on your borrowing capacity.
If you are applying with another person, include both applicants’ eligible income in the calculator.
You should also include the expenses, debts, credit limits and financial commitments of both applicants, together with any dependents.
A joint application may increase borrowing capacity because two incomes can be assessed, but both applicants will generally be responsible for repaying the entire loan.
The lender will verify each applicant’s income and assess the application under its lending criteria.
Example 1
For example, if your net monthly income is $5,000 and your monthly living expenses are $2,000, with a 6% interest rate over 30 years, you could borrow up to $287,000 with monthly repayments of $1,720.
Please note: The results provided by this calculator are estimates and for informational purposes only. Actual borrowing capacity will depend on your financial situation and your lender’s assessment.
Contact us today to speak with one of our finance experts and explore your loan options.
