Microburbs

Serviceability Calculator

Detailed borrowing power estimate using bank assessment criteria

Your Financial Details

Income

$

Before tax

$

Leave as 0 if not applicable

$

Annual amount — banks use 80% of this

Expenses

$

Leave at 0 to use HEM benchmark

Existing Debts

$

Per month

$

Per month

$

Banks use 3% of total limit as a commitment, even if $0 balance

$

Repayment rate based on income

$

Per month

Loan Details

%

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

Your Results

Max Borrowing Amount

$414,273

Max Property Price$517,841
Assessment Rate Used9.0%
Monthly Surplus at Max$850
Debt-to-Income Ratio0.3x

DTI Ratio: Healthy

This DTI ratio is within most lenders’ comfort zone.

Monthly Breakdown

Net income (after tax)$5,833
Expenses−$2,500
Commitments−$0
Available for mortgage$3,333

This is an estimate. Actual serviceability depends on your lender's specific assessment criteria, credit history, employment type, and living situation.

Disclaimer: This calculator uses simplified calculations including an approximate 30% tax rate, a 3% serviceability buffer, and HEM benchmarks. It does not account for individual lender policies, stamp duty, or LMI. Seek professional financial advice before making borrowing decisions.

How to use this calculator

When to use this

You want a detailed estimate of how much you can borrow, factoring in all your financial commitments — not just income and expenses, but credit cards, HECS, investment loans, and rental income too.

Steps

  1. Enter your gross annual income and your partner's if buying together.
  2. Set the number of dependants — this affects the HEM benchmark.
  3. Enter your monthly living expenses, or leave at 0 to use the HEM benchmark (banks use whichever is higher).
  4. Enter all existing debts — home loans, investment loans, car loans, personal loans.
  5. Enter your credit card total limits (not balances) and any HECS/HELP debt.
  6. Add rental income from any existing investment properties.
  7. Adjust the interest rate and loan term if needed.

Understanding your results

  • Max Borrowing Amount — the maximum loan a bank is likely to approve based on your full financial picture.
  • Max Property Price — assumes a 20% deposit (80% LVR). Your borrowing amount divided by 0.8.
  • Assessment Rate — banks add a 3% buffer above the actual rate to stress-test your repayments.
  • DTI Ratio — total annual debt divided by gross income. Green (<6x) is healthy, amber (6–8x) is stretched, red (>8x) may trigger lender caution.
  • Monthly Breakdown — shows exactly how your income is allocated: tax, expenses, commitments, and what's left for a mortgage.

Tips

  • Close unused credit cards — banks count the full limit even with $0 balance. A $20k limit you never use still reduces your borrowing power.
  • Paying off HECS before applying can significantly increase borrowing power, especially if your income triggers a high repayment rate.
  • Banks use 80% of rental income, so existing investment properties help but not dollar-for-dollar.
  • This is an estimate — talk to a mortgage broker for an exact figure tailored to your lender's specific policies.