Borrowing Power Calculator

The number this produces is a ceiling, not a target. It is the rough maximum a generic lender might consider on the figures you entered. It says nothing about whether borrowing that much is a good idea, and nothing about whether any particular lender will agree.

Why the answer feels lower than you expected

Lenders do not test the repayment you would actually make. They test a higher one, calculated at a buffered rate above the real rate, so that a borrower can still cope if rates rise. That buffer is the single biggest reason borrowing power comes back lower than people assume.

Why it changes so much between lenders

Every lender runs its own servicing model. They differ on how they treat overtime, bonuses, commission, rental income, trust distributions, HELP debts and dependants. The spread between the most and least generous assessment of the same household can be substantial, which is exactly why the order in which you approach lenders matters.

• Income is ongoing, verifiable and taxed in the way you described it.
• Living expenses are as declared, or at a benchmark where the declared figure looks low.
• Existing commitments continue unless you have told the tool they are being paid out.
• Credit card limits are counted at the limit, not at the balance you carry.
• A single generic servicing approach is applied, rather than any particular lender's policy.
• The loan is principal and interest over a standard term.

If your income is seasonal, recently changed, or comes from a business you own, this estimate is at its least reliable. Those situations need a real assessment rather than a model.

• Your deposit, and therefore the loan-to-value ratio, which caps borrowing independently of servicing.
• Lenders mortgage insurance, which is a cost and also a second set of credit rules.
• Your credit file. Defaults, arrears and recent enquiries can rule out lenders regardless of income.
• Employment stability, probation periods and how long you have been self-employed.
• Property type and location. Some apartments, rural holdings and specialised properties are restricted or valued conservatively.
• Stamp duty and other upfront costs, which reduce the deposit available for the purchase itself.
• The difference between what you can borrow and what you should borrow.

That last line is not a throwaway. Borrowing to the ceiling leaves nothing for a rate rise, a slow quarter or a repair. Most of the debt problems we help unwind began with a loan that was affordable on the day it settled and not much later.

1. 01Get your real living expenses in front of you. Three months of bank statements, honestly read.
2. 02Reduce or close credit card limits you do not use, since they are assessed at the limit.
3. 03Gather income evidence: payslips, the last two tax returns and notices of assessment, or BAS and accountant figures if self-employed.
4. 04Check your credit file before a lender does, so nothing on it is a surprise.
5. 05Speak to a broker before submitting anywhere. A declined application sits on your file and makes the next one harder.

We work across a panel of more than forty lenders. Matching a file to the right one on the first attempt is worth more than any estimate a calculator can give you.