Borrowing Power Calculator
How much can you borrow for a home loan? Get an instant estimate based on your income, expenses and debts — using current tax rates and the APRA serviceability buffer that lenders actually apply.
You could borrow approximately
$892,365
Estimate only — your lender's figure will vary
This is a general estimate only. It assumes even income splitting for couples and a standard living-expense floor, and does not reflect any specific lender's policy, your credit history, or all income types. A broker can give you an accurate figure and pre-approval.
Want your real number — and a lender who'll approve it?
This estimate uses one generic formula. A broker compares 30+ lenders to find the one that lends you the most for your situation — free, with a call back within 12 hours. 我们提供普通话/粤语服务。
How is borrowing power calculated?
Your borrowing power isn't just a multiple of your salary. Lenders work out your after-tax income, subtract your living expenses and any existing debts (including credit-card limits), and see how much monthly surplus is left. They then check you could still afford the loan at your interest rate plus a buffer of around 3% — the APRA serviceability buffer. Whatever loan size that surplus supports at the buffered rate is roughly your maximum.
Because every lender uses a slightly different formula and treats income types (bonus, overtime, rental, self-employed) differently, two people on identical incomes can be approved for very different amounts. That's exactly where a broker adds value.
5 ways to increase your borrowing power
- Reduce or close credit-card limits — lenders count the full limit, not the balance.
- Pay off car and personal loans — each monthly repayment directly lowers your surplus.
- Trim discretionary spending for a few months before applying.
- Choose the right lender — policies on overtime, bonuses and self-employed income vary widely.
- Extend the loan term — a 30-year term lowers the assessed repayment (though you pay more interest overall).
Frequently asked questions
How much can I borrow for a home loan?
As a rough guide, around 5–6 times your gross income, but the real figure depends on your after-tax income minus expenses, debts and credit-card limits, tested at your rate plus a ~3% buffer. Use the calculator above for an estimate, then confirm with a broker.
Do credit card limits affect how much I can borrow?
Yes — a lot. Lenders assess your total limit (not the balance), usually as ~3–3.8% of the limit per month. A $20,000 unused card can cut your borrowing power by tens of thousands, so closing unused cards before applying helps.
What is the APRA serviceability buffer?
Lenders must check you could still repay if rates rose, so they add a buffer — typically 3% — to your actual rate and assess your repayments at that higher rate. It's the main reason your borrowing power is lower than a simple repayment sum suggests.
This page is general information only and is not credit advice. Estimates are based on current Australian tax rates and a standard 3% assessment buffer, and may not reflect your lender's policy or your circumstances. Speak with a licensed mortgage broker for an accurate assessment.