Borrowing power calculator
Estimate how much you could borrow for a home from your income, living expenses and debts, assessed at your rate plus APRA's 3 percentage point buffer.
A rough guide only. Lenders use their own rules: they may count some income at less than its full value, use a higher living expense figure (often a benchmark), and count credit cards differently. They also check your credit history and savings. Ask a lender or broker for a real assessment. This is not financial advice.
How this calculator works
The calculator works out take-home pay with the ATO's income tax rates, the Medicare levy and any HELP repayments, then subtracts your living expenses, other loan repayments and an allowance for credit card limits (3% of the limit each month by default, which you can change). What is left each month is the most a new loan repayment could be. APRA requires banks to test that you could still make repayments if the rate were at least 3 percentage points higher, so the calculator finds the loan whose repayment at your rate plus the buffer equals what is left over.
Worked example for 2026-27: a single person earning $110,000 takes home about $7,023 a month. With living expenses of $3,200 a month and no other debts, about $3,823 is left over. At 6% plus the 3 point buffer (9%) over 30 years, that supports a loan of about $475,000. At the actual rate of 6% the repayment on that loan would be about $2,849 a month, and the loan is about 4.3 times income.
Using this page
A rough estimate of how much a lender might lend you, from your take-home pay, living costs and debts, with repayments tested at your rate plus APRA's 3 percentage point buffer.
Tips
- Be honest about living expenses: lenders check bank statements and use the higher of your figure and their own benchmark.
- Closing unused credit cards can raise borrowing power, because lenders count the limit, not the balance.
- Borrowing the maximum leaves little room for rate rises, a new baby or a drop in income.
How lenders decide
Each lender has its own serviceability model, but the steps are similar. They work out your income after tax, sometimes counting bonuses, overtime and rent at less than full value. They take off living expenses, using either your figure or a benchmark for a household like yours, whichever is higher. They take off repayments on other debts and an allowance for credit card limits. The money left over has to cover the new loan's repayment at a test rate, which APRA requires to be at least 3 percentage points above the loan rate.
Since 1 February 2026, APRA also limits loans of six times income or more to 20% of each bank's new lending, so very high loan to income ratios can be harder to get.
How to borrow more safely
Pay down or close debts and unused cards, cut regular spending before you apply, and save a bigger deposit. A guarantor or a longer term can raise borrowing power, but both carry costs and risks. The safest loan is one you could still repay if rates rose and your income fell.
Common questions
Why is my borrowing power lower than I expected?
Lenders test repayments at a rate at least 3 percentage points above the loan rate, as APRA requires. At 6% the test rate is 9%, which lowers the loan a given income can support.
Sources and checks
Our figures and rules follow these official sources:
- APRA: System Risk Outlook, May 2026 (serviceability buffer and debt-to-income limit)
- ATO: Tax rates for Australian residents (page updated 13 August 2026)
- ATO: Medicare levy
- ATO: Low income tax offset (page updated 8 June 2026)
- ATO: Study and training loan repayment income and rates (page updated 13 October 2026)
The 3 percentage point buffer is APRA's minimum. The credit card allowance and living expenses are your own inputs; lenders set their own.
Figures last checked: 31 October 2026. Spotted a mistake? Tell us.