Borrowing Power Calculator
This calculator gives a rough idea of an estimated borrowing range. It takes your take home pay, subtracts your living costs and other debts, and works out the loan that what is left over could repay at a higher test rate.
Every lender has its own method, so a real assessment can be quite different. Use the result as a starting point for your own budget, not as a promise of a loan.
Rates checked on
Rates checked on
Your pay after tax, as it lands in your account.
After tax. We count 80% of it, because lenders shade this income by at least 20%.
After tax, for example rent you receive.
Food, bills, transport, insurance, childcare, school fees and so on.
Car loans, personal loans and buy now pay later.
The limits, not what you owe. We count 3% of the limit a month.
Only used for the debt to income check.
- Estimated borrowing range
- Up to about $475,000
- Left over each month after costs and debts
- $4,000
- Repayment on that amount at 6.5%
- $3,007 a month
Tested at 9.50% a year: your rate plus the 3 percentage point serviceability buffer APRA expects lenders to use.
Lenders use their own expense measures and policies. This is not what a lender will approve.
This is an estimate based on the numbers you entered and the assumptions listed below. It isn't an offer of credit or an assessment of what a lender will approve. Figures checked on 29 October 2026.
Read the guide: Borrowing power: how lenders work out what you can borrow
How it works
We add up your take home pay, 80% of any bonus or overtime, and other regular income. Lenders shade bonus and overtime income by at least 20%.
From that we subtract your living costs, your other loan repayments and 3% of your total credit card limits each month. What is left is the amount available for home loan repayments.
Lenders test whether you could still afford repayments if rates rose. APRA expects them to add a buffer of at least 3 percentage points to the loan rate. The estimate is the loan that your spare money could repay at that higher rate over the term you choose.
If you enter your income before tax, we also show debt to income: the estimate divided by that income. From 1 February 2026 APRA limits lending at 6 times income or more to 20% of each bank's new lending.
Assumptions
- Income is entered after tax, so no tax rates are used. Enter what reaches your account each month.
- Lenders usually use the higher of the living costs you declare and a benchmark figure for a household like yours. This calculator only uses the figure you enter.
- Credit cards are counted at 3% of the limit each month, a common lender approach, even if you pay the card off in full.
- Self employed income and rental income are treated differently by each lender. Rent you enter as other income is counted in full here.
- The result does not include your deposit, stamp duty, lenders mortgage insurance or the costs of buying.
Questions people ask
What is the serviceability buffer?
It is an extra margin added to the interest rate when a lender checks if you can afford a loan. APRA has kept it at 3 percentage points, so a loan at 6.5% is tested at 9.5%.
Why might a lender offer less than this estimate?
Lenders may use higher living cost benchmarks, count only part of some income, include other commitments, or apply their own limits on debt to income and loan to value. Your credit history also matters.
Should I borrow the full amount?
Not necessarily. The amount a lender will lend is not the same as what is comfortable for your budget. Check what the repayments would be and whether you could still pay them if rates rose or your income fell.
Sources
- APRA: Macroprudential policy settings (28 May 2026)
- APRA: Submission to the Senate Select Committee on Productivity, housing lending (April 2026)
- Moneysmart (ASIC): Choosing a home loan
Checked 29 October 2026. Official pages can change; check them before you rely on a figure.