Borrowing Power Calculator
Find out how much you could borrow based on your income, expenses and financial commitments.
Calculate Your Borrowing Power
Enter your financial details below to get an estimate of how much you may be able to borrow. All fields marked with * are required.
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Estimated Borrowing Power,
Monthly Repayment,
Monthly Surplus,
Disclaimer: This estimate uses a methodology aligned with lender serviceability calculators: Australian PAYG tax + Medicare levy on each applicant’s income, the higher of HEM benchmark or your declared expenses for living costs, existing debts buffered to assessment rate, and a +3% APRA buffer on the loan rate. Actual approvals vary by lender. Contact David for a precise figure across 40+ lenders.
Frequently Asked Questions
Borrowing power is the maximum amount a lender may approve you for based on your income, expenses, existing debts and lifestyle. Lenders calculate this using a detailed assessment of your net income surplus after all commitments, then apply a buffer rate (typically the loan rate plus 3%) to ensure you can afford repayments even if rates rise.
APRA (the Australian Prudential Regulation Authority) requires lenders to assess loan applications at a rate that is at least 3% above the product rate. This serviceability buffer protects borrowers by ensuring they can still meet repayments if interest rates increase during the life of the loan.
There are several strategies to boost borrowing power: reduce or close unused credit cards, pay down existing debts, minimise discretionary spending in the months before applying, consider a longer loan term, apply jointly with a partner, or explore lenders with more favourable assessment criteria. David can help you identify the best approach for your situation.
Yes. Lenders apply a minimum living-expense benchmark called HEM (Household Expenditure Measure) that varies by household type, number of dependants and total income. This calculator uses the same HEM table that major lenders such as Macquarie use, and applies the higher of HEM or your declared expenses — exactly as a bank would.
Include your regular monthly living expenses such as groceries, utilities, insurance, transport, subscriptions and other regular commitments. For existing loan repayments, include any current home loan, car loan, personal loan or minimum credit card payments. The more accurate your inputs, the more realistic the estimate.
No. This calculator provides an estimate based on simplified criteria. Actual borrowing power varies between lenders and depends on factors such as your credit score, employment type, property type, deposit size and full financial history. For an accurate figure, David can run your details through actual lender calculators and find the best options.
Yes, significantly. Different lenders have different assessment criteria, expense benchmarks and income shading methods. One lender might approve you for $650,000 while another offers $720,000 for exactly the same financial situation. As a broker with access to 40+ lenders, David can identify which lenders will offer you the strongest borrowing position.
Absolutely. David provides free, no-obligation borrowing power assessments using actual lender tools. He will review your full financial picture and give you a realistic figure based on the lenders most likely to approve your application. Get in touch or call 0417 676 191 to get started.
Want to Know Your Exact Borrowing Power?
This calculator is a great starting point. For an accurate assessment using real lender criteria, book a free consultation with David.