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Borrowing Power Calculator

Estimate how much you can borrow based on your income, expenses and existing debts. Uses standard Australian lending criteria.

Data stays on your deviceATO sourced data

Disclaimer

This calculator provides estimates for general information purposes only. Results should not be relied upon as professional financial, tax, or legal advice. Tax rates and thresholds are based on publicly available ATO data and may change. Always consult a qualified tax agent or financial adviser for advice specific to your circumstances.

Frequently Asked Questions

How do banks calculate borrowing power in Australia?
Banks assess your ability to repay using a serviceability buffer — typically your loan rate plus 3%. They look at your income, expenses, existing debts, dependants, and credit history. A household earning $100K with minimal debts can typically borrow $400-600K.
Does my partner's income increase borrowing power?
Yes, joint applications combine both incomes, significantly increasing borrowing capacity. However, both applicants' debts and expenses are also considered.

What is Borrowing Power?

Borrowing power is the maximum amount a bank will lend you for a home loan, based on your income, expenses, debts, and the lender's assessment criteria.

How this calculator works

Australian banks assess your capacity to repay using a serviceability buffer — typically the loan rate plus 3%. This means if the actual rate is 6.5%, they test whether you can afford repayments at 9.5%. The calculator estimates your maximum loan based on 30% of gross income allocated to repayments, minus existing debt commitments and living expenses. It then shows the maximum property price at different deposit levels (20%, 10%, 5%) and your debt-to-income ratio — a key metric banks use to assess risk.

All calculations are performed in your browser — your data never leaves your device. Results are for general guidance only and should not be considered professional financial advice.

Built and maintained by Konstantin Iakovlev. Data sourced from the ATO and official Australian government sources.