Borrowing power calculator

A rough, indicative figure for what a lender might let you borrow. Every lender runs its own numbers; a broker will get you the real ones.

Household income (before tax, per year) Living expenses (per month)

Everything that is not rent or loan repayments: food, transport, insurance, the lot.

Other loan repayments (per month) Credit card limits (total)

Lenders count the limit, not the balance.

Interest rate (% p.a.)

Lenders assess at roughly 3% above the actual rate. The buffer is applied for you.

Indicative borrowing power

–

over 30 years, assessed with a 3% buffer

Assessed at–

Monthly repayment capacity–

Indicative and general only, not advice, a quote or an offer of credit. Real lenders apply their own expense floors, income haircuts and policies, and two lenders can land fifty thousand dollars apart on the same application. Talk to a mortgage broker or lender for a figure you can act on.

How the figure is estimated

The sum works out what's left of your after-tax monthly income once living expenses, other repayments and a share of credit card limits are taken out, then asks what loan that surplus would service over thirty years at your rate plus a 3 per cent buffer, which is how lenders stress-test an application.

Why lenders count card limits you never use

A limit is money you could owe tomorrow, so serviceability rules treat around 3.8 per cent of the total limit as a monthly commitment whether you spend it or not. Cancelling an unused card is one of the few free lifts to borrowing power.

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