Home Loan Borrowing Power Calculator

Your borrowing power is the amount you may be able to borrow for a home loan. It’s based on your current financial position, including your income, savings, credit history and everyday spending. We’ll also look at any existing commitments, such as credit cards, personal or car loans, and regular repayments.

To work out your borrowing power, we start with your gross income and allow for income tax, living expenses and any current loan repayments. This helps us understand what’s left over once all your costs are covered, and what you could comfortably afford to repay.

Every lender carries out a borrowing power assessment when you apply for finance. Using our borrowing power calculator can give you a helpful starting point — showing how much you might be able to borrow, and where there may be opportunities to strengthen your position before applying.

Our online borrowing power calculator is designed to make things simple by doing the heavy lifting for you. Just enter your income details — including any regular income from assets or investments — along with your existing financial commitments. If you don’t see a specific category for one of your regular expenses or payments, you can include it under Other payments.

You can use the pre-filled average Australian living expenses as a starting point, or enter your own figures if you prefer. You’re also able to adjust other assumptions, such as the interest rate buffer and the estimated cost of dependents, so the result better reflects your real-world situation.

To have borrowing power, your income needs to comfortably cover your everyday expenses and financial commitments. What matters most is the amount left over once all your regular costs are taken care of, as this shows what you can realistically afford to repay.

Your income can include money from a range of sources, such as your salary, rental income, investment returns or regular interest earned on savings. Taking all of this into account helps build a more complete picture of your financial position.

Yes. The more you spend, the less you may be able to borrow. While living and transport costs are part of everyday life, keeping an eye on your spending and finding ways to manage it can help you boost your savings and increase your borrowing power sooner. Small changes today can make a big difference when it comes to reaching your goals.

If you’d like to increase your borrowing power, there are a few practical steps you can take. This could include increasing your income, reducing regular expenses, or paying down existing debts. Another option is to apply for a loan with a partner or spouse — their income and financial commitments will also be taken into account, and our online borrowing power calculator can help you see how a second borrower could affect the amount you could comfortably borrow.

It’s also worth regularly checking your credit file — you can do this online and for free. Keeping a strong credit history shows lenders that you’re a low-risk borrower, which can work in your favour when applying for a loan.