How Much Can I Borrow?

Applicant details

Number of adults ?
Number of children ?
What type of loan do you need? ?
My/our housing situation will be ?
Where will I be living?
I live in the capital of this state.

Income details

Please enter your pre-tax income in each box. Our calculator will work out your tax automatically.
  • Income details
  • Base income p.a.
  • Tax free income p.a.?
  • Rental income per week?
  • ApplicantApp 1
  • $
  • $
  • $

Commitment details

New mortgages

  • Loan amount
  • Term ?
  • Interest only periodIOP ?
  • Rate type ?
  • InvestmentInvt ?
  • $

Commitment details

Current mortgages

  • Loan amount
  • Rate ?
  • Term ?
  • IOP ?
  • Rate type ?
  • InvestmentInvt ?
  • Repaid ?
  • $

Commitment details

Current commitments

Total credit card limits ?
$
Total personal loan repayments per month
$
Total car loan repayments per month
$
HECs/HELP repayments per month ?
$

Contact a mortgage broker

Please email me a copy of the results: Yes No
Talk to one of our mortgage brokers about your situation: Yes No   

Results

The ‘How much can I borrow?’ calculator takes your income and expenditure and provides an accurate indication of how much you can afford to borrow.

It combines the exact method used by the serviceability calculators of three banks to find out whether you’d be eligible for a home loan.


How can we get you a better deal?

If you’ve used another online calculator, you may have realised that most do a general assessment of your income and expenses. They don’t use the same methods used by the banks!

How is the ‘How much can I borrow?’ calculator unique?

Our online calculator takes a very different approach to help you to find the most suitable loan:

  • It compares three banks in one go.
  • It uses the actual calculation methods used by the lenders’ credit departments.
  • It can change the loan structure to work out your maximum borrowing power.
  • It takes into account advanced features such as fixed rates, negative gearing, interest only periods and your family size.

In fact, the calculator is so accurate that it even copies small errors in the tax rates used by some of the banks!

If you’d like to apply for a loan then please fill in our free assessment form or call us on 1300 889 743 and one of our mortgage brokers will provide you with an obligation free quote. We have extensive knowledge of lender serviceability and criteria, so we can provide you with an accurate and competitive assessment of how much you can afford to borrow.


How can I improve my borrowing power?

Your borrowing power will depend on your income, family size, location, current debts, type of loan and the lender that you choose.

The easiest way to increase your borrowing power is to choose a lender that can lend more for someone in your situation. Some banks are conservative when lending to investors, some use higher living expenses in their assessment and others will lend you less if you have an interest only loan.

However, you can also change your situation to improve your borrowing capacity.


How do I use the ‘How much can I borrow?’ calculator?

The calculator can be completed in three easy steps:

  1. Input your household details.
  2. Input your income details.
  3. Input your expenses and how much you would like to borrow. Commitments can include any current home loans you have, credit cards, personal loans and car loans.

Once all your details are completed, you can enter your email address and then press ‘Calculate’. The calculator will then show the maximum amount you can borrow and will email you a copy of the results.

If you’re unsure of what to enter in the calculator, simply hover your cursor over the question mark for further details.

So are you ready to apply for a home loan? If you send us your payslips and other documents then we can calculate the exact amount that you can afford to borrow for a home or investment property. Call us on 1300 889 743 or fill in our free assessment form to speak to one of our mortgage brokers.


Are the calculator results accurate?

This calculator uses the exact same method used by the banks! It works for people in a normal situation with no lending policy exceptions. It’s extremely accurate, even for investors with negative gearing, and other complex situations.

When looking at the results, you may have noticed there are a number of items that differ from lender to lender.

Tax and Medicare rates

Some banks have errors in the tax rates that they are using. They are usually very minor errors, however, we’ve copied those errors into our calculator so that we get the same results as the banks.

If you have an investment loan with negative gearing benefits then the differences may be even larger. All banks either calculate negative gearing benefits using the same method as the tax office or they use a more conservative method. It’s not that one bank’s method is wrong, it’s just that some are more conservative than others.

Living expenses

Each bank has their own method of estimating the living expenses for your family. These are the day to day expenses that you have excluding tax, rent and your debt repayments. In actual fact, each bank uses the higher of your estimated living expenses and their calculator’s estimate for a family of your size.

Debt repayments

Most banks will use the actual rent you are paying or the actual repayments on any personal loans in their assessment. However, most lenders will check to make sure you can afford your home loan even if you max out our credit cards. Not every lender assesses your situation in this way and they differ in the repayments they calculate for your credit card debt.

Mortgage repayments

Lenders typically calculate your repayments using an assessment rate which is 1.5% to 2.0% higher than the actual rate on your mortgage. This ensures that you can still afford the loan if interest rates increase. The assessment rate can vary depending on if the loan is a new or existing loan and on the loan product chosen. Features such as interest only repayments are also assessed differently by different banks.

Buffers

Some lenders require you to have surplus funds left over, known as a buffer, to further reduce the risk that you cannot afford your repayments. This is a conservative method of assessing whether or not you can afford a loan as they have already used a higher interest rate than the actual rate that you are paying.


Apply for a home loan

If you wish to find out how much you can borrow with a specific lender, talk to one of our experienced mortgage brokers. Please fill in our free assessment form or call us on 1300 889 743 and we will help you to calculate how much you can borrow.


Are there different methods of calculating serviceability?

There are three different methods that lenders use to calculate your serviceability:

  • Net Surplus Ratio (NSR),
  • Debt Servicing Ratio (DSR), and
  • Surplus / Uncommitted Monthly Income (UMI).

They differ in how they weigh up your income and expenses, and the way they display the result. The DSR method was commonly used in the past, however, it’s too simple and tends to be inaccurate for property investors or for people earning over $200,000 or under $30,000.


Why serviceability can be tough for investors

In order to cool down conceivably unsustainable growth in the property market, one of the first levers that the Australian Prudential Regulation Authority (APRA) pulls is to restrict lending to investors.

Banks usually respond to this by making borrowing power calculations a lot more conservative.

In the past, your serviceability was assessed at the actual repayments you would pay every fortnight or month.

For example, for a $200,000 interest loan at 3.5% per annum, the banks would just need to see that you could afford $7,000 a year or $583 a month.

Under tighter serviceability rules, your bank may assess your borrowing power at principle and interst (P&I) at 6.00% or even higher.

So on that same loan amount, you’d need to show a sufficient income to debt ratio to afford $12,000 per annum or $1,000 per month.

That’s almost double of what you actually need to pay per month!


How can a broker help investors?

A strategy that our brokers often employ with their clients is to go with a bank at a high serviceability rate for 2-3 properties and then buy 2-3 more properties using a non-bank lender.

Some non-bank lenders aren’t regulated by APRA which means they don’t need to adhere to serviceability calculation rules.

Despite the fact that you’ll be charged a slightly higher interest rate, it’s a strategy that may help you to significantly grow your investment portfolio.

Of course, you should discuss your situation with your mortgage broker to ensure that you have the right mortgage strategy for your investment plans.


Which lenders use serviceability?

The following lenders use either the NSR, DSR or UMI method:

  • Adelaide Bank
  • Advantage (Formerly known as Challenger / Interstar)
  • AMP
  • ANZ
  • Australian First Mortgage (AFM)
  • Australian Secured & Managed Mortgages (ASMM)
  • Australian Unity
  • Bank of Queensland (BQLD)
  • BankWest (BW)
  • Better Mortgage Company (BMC)
  • Citibank
  • Commonwealth Bank of Australia (CBA)
  • FirstMac
  • Heritage Bank (Formerly a Building Society)
  • Homeloans Limited
  • Homeside Lending (A division of NAB)
  • ING Direct
  • LaTrobe Financial
  • Liberty Financial
  • Loan Ave
  • Mainstream Capital
  • Merchant Mortgages
  • MKM Capital
  • Mortgage Asset Services (MAS)
  • National Australia Bank (NAB)
  • Paramount Mortgage Services
  • Pepper Home Loans
  • RAMS Home Loans
  • St George Bank (StG / SGB)
  • Suncorp Metway
  • The Rock Building Society
  • Westpac Bank (WBC)

Although our ‘How much I can borrow?’ calculator doesn’t take all of these lenders into account, it does compare three of the top lenders. The amount that you can borrow can vary significantly between different banks.

If you’d like a borrowing power quote for a specific lender then please contact one of our mortgage brokers on 1300 889 743 or fill in our free assessment form.


What are assessment rates / floor rates?

Banks don’t simply assess your borrowing capacity based on their standard variable rate when you apply for a home loan.

Their actual assessment rate will be a higher “floor” rate as a way of mitigating their risk if interest rates were to suddenly rise.

This can have a serious impact on your ability to borrow the amount you need but not all lenders apply the same serviceability rules.

You can check out the What Is An Assessement Rate? page for more details.


Disclaimer

Whilst we try to be as accurate as possible, the results shown in the ‘How much can I borrow?’ calculator are estimates only. It is provided for illustrative purposes only and is based on the accuracy of the information provided.

It does not constitute a loan approval, quote or an offer to lend. The calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product. The calculator does not assume changes in the cost of living over time or your actual living expenses which may differ from those calculated by the banks.

Code errors or delays with updating the calculator may cause your result to be inaccurate. You should obtain a formal approval from a lender before making any offer on a property or any financial decision that relies on a new mortgage.

  • Rosie Adams

    Hi, I’m a casual employee with one year in the current job in the same industry. I’ve previously worked in the same field for one and a half years. I’ve good salary of almost 90k, I wanted to know how much can I borrow?

  • Hi Rosie,

    Not all lenders would lend to you while you are on a casual employment, however there as some options. Also, the fact that you have worked in the same industry previously gives them more confidence in lending to you. To get an estimate of your borrowing capacity, I will need to know more about your situation.

    Try using our how much can I borrow calculator https://www.homeloanexperts.com.au/how-much-can-i-borrow/ to get an estimate or speak to one of our mortgage brokers to get a more accurate figure.

  • Nick

    Can i lend as a carer

  • Hi Nick,

    Some lenders can use a carer’s allowance when assessing your borrowing power. You’d also need to have full time work to be able to prove you can afford a mortgage.

  • Jason Chaplin

    New mortgage cost is coming in at $5448, though when I used repayment calculator with same figures the cost was only $3817?

  • Hi Jason,

    This calculator will work out your repayments using an assessment rate which is higher than the actual rate. The banks assess loans in this way because if interest rates rise they can be sure their borrowers can still afford their home loans.

  • Nawal Kasou

    Hi I got my PR to Australia can I have Mortgage finance while I am working in another country?

  • Hi Nawal
    Yes this is possible depending on your country of residence and currency of income. Usually we can find a lender that can assist. Contact us if you’d like to get preapproved.

  • Lucci

    What is the max interest only term for an investment loan in Australia?

  • The maximum interest only term available in Australia is actually 15 years but the majority of lenders only allow a 5 year interest only period, with a select few offering 10 years and only two offering a 15 year interest only period.

  • John

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  • Bel Gade

    Hey,
    Have been in contact with you giys before however am looking for a quicker response as I’ve not heard back from the email I sent to last person I spoke with.
    I’m wanting to know if a court-sealed seperation agreement stating that my almost ex-husband has to refinance a home loan currently in my name, is this enough for a bank to lend to me before he’s actually refinanced my name off of the loan?

  • Hi Bel,
    Sorry to hear that. If you like try to call the broker as they may have been busy with applications recently.
    Usually yes a court order proving he has to refinance the loan can be accepted as evidence that you will be removed from a loan. The bank may put a condition that prior to formal approval or prior to settlement that you must no longer be a party to your ex-husband’s loan.

  • disqus_ryfrxyqpvk

    Hi
    Are there any restrictions on lending with age? Say someone who is 59 or 60 ? Single!

  • Hi
    Yes there are restrictions and you can read about them here https://www.homeloanexperts.com.au/home-loan-articles/retirement-age-home-loan/
    As a general rule you have to be able to show that you can repay the loan without hardship. So paying it out from your super, downsizing or making extra repayments until you retire can all be a way of showing an ‘exit strategy’. Different banks accept different strategies. If your bank isn’t helping then contact us and we’ll assist. https://www.homeloanexperts.com.au/free-quote/

  • Greta Bricknell

    Hi, I have rented by myself for 1 year ($380 per week) I am currently earning approx 82,000 per year before tax (but half is comission as I work in carsales) I am struggling to save a good deposit because of rent. I am wondering if parents HAVE to go as guarantor or if I can just use my rental history in form of deposit. I will be eligible for first home owners grant (QLD)

  • Hi Greta,
    Yes your parents would need to go guarantor https://www.homeloanexperts.com.au/guarantor-home-loans or you’d need some savings of your own. You’re right in QLD the FHOG is large and this helps a lot of people to get into the market however for most properties you still need to put in some of your own money or get a guarantor.

  • kim

    Hi am am wondering how I would go about getting a home loan if I have been bankrupt previously and what savings, employment income proof, time in employment etc I would require?

  • kim

    if the bankruptcy is no longer on my credit report do I need to declare it? also is 6 moths employment history enough?

  • Hi Kim,
    The lenders you had debts with will never forgive you so don’t apply with them. Some banks check the bankruptcy register and some don’t but you should always disclose this if the lender asks otherwise they’ll decline your loan. There are some major lenders that don’t care about it as long as it isn’t on your credit file so just ask a mortgage broker to assist you and you’ll be fine.

  • Michelle Hayward

    Are there any home loans that will lend 90%?

  • Hi Michelle,
    Yes there are. And the good news is that some lenders offer incredible discounts even though you have a small deposit. You can find out more info here https://www.homeloanexperts.com.au/no-deposit-home-loans/90-percent-home-loan/

  • Michelle Hayward

    Thank you for your prompt response. Will any of these lenders lend 90% without LMI?

  • Hi Michelle,
    Yes however the criteria is strict. Mostly it’s about your profession.
    https://www.homeloanexperts.com.au/lenders-mortgage-insurance/lmi-discounts-and-no-lmi/

  • Sarah Cenan

    Looking to buy $400000 home to live in in Brisbane. Earn $60000 x 2 (joint ap). $21000 credit card limits + $4000 personal loan. Only have approve $10000 deposit but currently pay $530 week rent. Is this doable to get a home loan or do I need more deposit?

  • Hi Sarah,
    This would be a case by case situation. Your income is good and as long as your credit cards are paid off (<$5k owing) then your debt level is ok as well. The main issue is your deposit size. If you're first home buyers and eligible for the grant then this may work. You can contact us here if you'd like our assistance. We'd need to see statements for all of your debts and your rental history to confirm that you're eligible. https://www.homeloanexperts.com.au/free-quote/

  • Ashley

    I’m studying and working casually at the same time. I make around $30,000 a year. My boyfriend has a permanent F/T job and earns $95,000 before tax. We want to build a house and need at least $550,000 finance. Because I’m casually employed, serviceability has been an issue. My mum is willing to go guarantor though so can we borrow without me needing to have a full time job?

  • Hey Ashley
    Yes, you can potentially go for an income guarantor type loan. There are also other alternative options if you want to consider them as well. You can wait until you finish studying and then go F/T so your income is high enough. Another option is that your mum can be a part owner of your property, around 10-15%, and then we can use her income to prove you can afford the loan. Note that she would need to help with repayments as well. Please call our office if you would like to discuss it all with an expert guarantor loan specialist.

  • Lynne Cure

    Hi, I earn about 59k as a permanent part time worker and my husband is on about 90k as an ongoing worker. We have a 25k c/c, pay $1000p/m in rent and a car payment of $476 p/m. We would like a 420k house and land in Mackay. We have very little savings, wuld we qualify for the new home construction loan? We do not qualify for the new home owners grant. Many Thanks

  • Hi Lynne,
    The amount of unsecured debt that you have is a problem unfortunately. Your only chance of approval would be with a guarantor loan https://www.homeloanexperts.com.au/guarantor-home-loans but we’d need to do a full assessment to confirm that you’re eligible. A lot of lenders would have concerns about your debts.

  • Lynne Cure

    BUGGER! No chance of getting a guarantor. Thanks. Looks like we’ll just have to pay dead money on renting.

  • Nicole

    Hi, 100K p/a, no dependants, Investment property with split offset loan. (210K @ 4.44% Fixed 19 yrs to go and 70K @ 5.28% Variable 19 yrs to go.) $100K in savings. Car Novated Lease ($430 f/n in loan cost – not incl running costs) with 2.5yrs to go.
    $15K credit Card.
    I’m hoping to purchase a property in NSW – Port Macquarie area approx $500,000.
    Could you please provide an estimate on borrowing potential?
    I can reduce or remove the credit card if that’s a negative factor. I pay it monthly in full.
    Thank you,
    Nicole

  • Thomas

    Hi. My wife and I have a combined income of 134k with 1 dependant. Monthly expense is $5200 including mortgage for the house we’re living. We’re looking at buying a land and build a rental property worth 420k. We have some savings to cover 10% deposit, LMI and stamp duty in VIC. Would just like to know our chances. Thanks

  • Hi Thomas,
    Yes this should be possible. However we’d need to know more information to be sure. I’ll email you with a few questions and then we’ll complete a proper assessment for you.

  • Reno Camilleri

    Hi
    Joint $125K + $45k Gross for 2017, $79K +$40k Gross 2016, $470/wk rent and 1 dependant, self employed for myself. wife is casual and will be getting back to work soon after maternity leave
    Property 1 – value $820k, rent $600/wk, $595k loan @ 4.55%, Int. only 4 yrs remaining
    Property 2 – value $600k, rent $700/wk, $488k loan @ 4.69%, int. only 4 yrs remaining
    i have about $90k available redraw for next investment. can i purchase another investment and if so, how much?
    If not, can i purchase a PPR and how much? (roughly)
    obviously this will be after my wife will be back at work for over 3 months
    Thx

  • Hi Reno,
    This is a bit complicated so it’s best we complete a full assessment.
    The good news is we have lenders that can accept maternity leave https://www.homeloanexperts.com.au/unusual-employment-loans/maternity-leave-home-loan/ and be flexible with casual employment https://www.homeloanexperts.com.au/unusual-employment-loans/casual-employment-home-loans/
    For self-employed applicants there are a variety of methods to prove your income and the best is likely to use the most recent financial year’s income, again we have lenders that can do this https://www.homeloanexperts.com.au/low-doc-loans/alternative-income-verification/
    We also have some lenders that are very lenient with investment lending.
    The problem is the combination of all three. That reduces the choice in lenders which may or may not mean we can help you.
    I’ll email you and cc one of our mortgage brokers. If you provide some more info to him then he can give you an exact assessment and also some options such as waiting until your wife is back working and what you can borrow then.

  • Daniele Vicelli

    Hi,
    I am an Australian citizen and I have a foreign income and work as an airline pilot.
    My house in Australia is evaluated 820k.
    We need to do some work and renovation so I am looking for a bank or institution who would lend us money as my current bank its not interested in overseas income.
    Can you help us with it ?

    Kind Regards

  • Hi Danielle
    Sure we can help with this. Which currency are you paid in and how much do you need to borrow? Are you based in Australia or is your property an investment?

  • tenni

    hi there,

    is there a lenders who can borrow more home loan base on my income ?

    the property i would like to purchase is $71,0000 in N.s.w.

    yearly my gross income is $75000

    net income is $ 60000 yearly

    i have got deposit $80,000 and i would like to borrow home loan $630000.

    kind regards

    tenni

  • Hi Tenni,
    We’d need to complete a full assessment to work out your borrowing power. Please complete this form https://www.homeloanexperts.com.au/free-quote/ and a broker that specialises in this area will contact you to assist.

  • Johanna

    Hi There,
    I am wondering if there are any lenders who would allow you to borrow on a small deposit ($5000-$10000), without a guarantor? We are wanting to borrow around $330,000 to build in a regional area, our combined yearly income before tax is $108,000.
    Thanks

  • Hi Johanna,
    In rare cases it’s possible to use a personal loan to top up your deposit. You can read more about this here https://www.homeloanexperts.com.au/no-deposit-home-loans/

  • Shea

    Is it possible to get my grandmother to go guarantor on my mortgage?

  • Yes, and we have a potential lender in mind that may be able to help as long as they can meet their obligatins. Please contact us for more info tailored to your situation and loan requirements.

  • Hannah Walker

    How far in advance do we need to apply for finance for an untitled
    block? If the block is due to title in April 2018, can we apply for the
    loan now or do we need to wait until March? We have paid 5% deposit, the
    contract is unconditional (thanks to a previous broker stuffing us
    about) and we need to know when to apply for the loan to pay the
    balance.

  • Hi Hannah,
    It’s best to apply in February. If you apply more than 3 months out then the approval may expire anyway.
    I’d recommend that you have your situation reviewed by a broker now because if you don’t meet lending policy then it’s best to make changes now so that you can qualify next year. This isn’t an application it’s a preliminary assessment. I’ll email you and cc one of our construction specialists. If you’d like our assistance just email them with your best contact number.