Borrowing Calculator

Use this calculator to estimate how much you might be able to borrow on a mortgage

Your Annual Income (before tax)

Partner's Annual Income (before tax)

Monthly Living Expenses

Other Monthly Debt Payments

e.g., car loans, credit cards, personal loans

Interest Rate (% p.a.)

Loan Term (Years)

Estimated Borrowing Power

$145,027

Estimated Monthly Payment

$917

Debt-to-Income Ratio

1.5x

Most lenders prefer DTI below 6x

Important Notes

This is an estimate based on general lending criteria
Actual borrowing power depends on your specific situation
Banks assess income and expenses differently
Contact us for accurate pre-approval figures

What borrowing power really means

Borrowing power is an estimate of what a lender may be willing to offer based on income, living costs, existing debt, interest-rate buffers, and loan structure. It is useful for planning, but it is not a guaranteed approval amount.

Higher income can help, but expenses and debt commitments matter just as much.
Banks usually test affordability at a rate higher than today's headline rate.
Different lenders can produce different results from the same numbers.

How to use this estimate properly

The best use of a borrowing calculator is to understand your rough range before talking to a broker or lender. It helps you set expectations, but the next step is always a real servicing assessment.

Use conservative living-cost and debt figures rather than optimistic guesses.
Pair the result with deposit, LVR, and repayment checks before house hunting.
Re-run the numbers if rates, income, or debt change.

Borrowing power FAQs

How accurate is a borrowing power calculator?

It is a useful planning estimate, but actual approval depends on the lender's servicing model, policy rules, deposit, credit profile, and the evidence behind your income and expenses.

Why can banks give different borrowing results?

Each lender applies different affordability assumptions, stress rates, minimum living-cost rules, and treatment of debts or income types.

Does borrowing power mean I should borrow the maximum?

Not necessarily. A comfortable repayment buffer usually matters more than chasing the largest possible loan amount.

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Actual loan terms, rates, and eligibility may vary. Please contact a Mortgage Lab adviser for personalised advice.