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Borrowing Power Calculator

Estimate how much you could borrow for a property

Your Financial Details

$

Annual gross income

$

Leave as 0 if not applicable

$

Food, utilities, transport, etc.

$

Car loans, credit cards, HECS

$
%

Assessment rate: 9.0% (incl. 3% buffer)

Your Results

Estimated Borrowing Power

$476,414

Max Property Price$526,414
Est. Monthly Repayment$2,856
Debt-to-Income Ratio34.3%
Deposit$50,000

This is an estimate. Actual borrowing power depends on your lender's assessment criteria, credit history, employment type, and other factors.

Disclaimer: This calculator uses simplified calculations including an approximate 30% tax rate and a 3% serviceability buffer above the entered interest rate. It does not account for stamp duty, lenders mortgage insurance (LMI), or other purchase costs. Seek professional financial advice before making borrowing decisions.

How to use this calculator

When to use this

You're wondering how much you can borrow before you start looking at properties. This gives you a realistic price range to search within.

Steps

  1. Enter your gross annual income (before tax).
  2. Add your partner's income if you're buying together — leave as $0 if buying solo.
  3. Enter your monthly living expenses — food, utilities, transport, subscriptions, etc.
  4. Enter any existing debt repayments — car loans, credit card minimums, HECS/HELP, personal loans.
  5. Enter the deposit you've saved so far.
  6. Adjust the interest rate and loan term if needed.

Understanding your results

  • Estimated Borrowing Power — the maximum loan amount a bank is likely to approve based on your income and expenses.
  • Max Property Price — your borrowing power plus your deposit. This is the top end of your budget.
  • The +3% buffer — banks don't test you at today's rate. They add roughly 3% on top to make sure you can still afford repayments if rates go up.
  • Debt-to-Income Ratio — how much of your income goes to debt. Green is healthy, amber is stretched, red means lenders may be cautious.

Tips

  • Pay off credit cards before applying — banks count the full credit limit as a liability, even if you don't use it.
  • This is an estimate — talk to a mortgage broker for an exact figure tailored to your situation.