Borrowing Power Calculator
Estimate the maximum loan a lender will approve based on your income, expenses and existing debts — with the APRA 3% serviceability buffer automatically applied.
Applicants
Dependents (children / dependants)
Estimated Maximum Borrowing Power
$366,389
Assessed at 9.50% (6.50% + 3% APRA buffer)
80% LVR — no LMI
$457,986
Deposit required: $91,597
90% LVR — LMI applies
$407,099
Deposit required: $40,710
Monthly Net Income
$6,351
after tax
Expenses Used
$2,500
declared
Available for Repayment
$3,851
per month
This calculator provides estimates for general information purposes only. Results are not financial, tax or legal advice and do not take into account your personal circumstances. Always consult a licensed professional before making any financial decisions.
Frequently Asked Questions
What is the APRA serviceability buffer?▾
APRA requires all banks to assess your loan at least 3% above the actual rate. This stress test ensures you could still afford repayments if rates rise.
If the loan rate is 6.5%, the bank assesses your ability to repay at 9.5% — which is why your borrowing power is lower than a simple calculation at the loan rate alone.
What is the HEM benchmark?▾
The Household Expenditure Measure (HEM) is a minimum living cost benchmark used by banks. If your declared expenses are lower than the HEM for your household, the bank uses HEM — not your declared amount.
Our calculator applies the HEM floor automatically and flags when it's been used.
How do dependents affect borrowing power?▾
Each dependent increases the HEM benchmark applied to your application. As a rough guide, each dependent can reduce borrowing capacity by $30,000–$60,000 depending on your income level and lender.
Does a joint application increase borrowing power?▾
Yes — a joint application combines both incomes and substantially increases capacity. However, both applicants are jointly and severally liable for the full debt.
How can I increase my borrowing power?▾
- Pay down existing debts — credit cards, car loans, HECS
- Close unused credit cards — banks count the limit, not the balance
- Add a co-borrower — a partner's income directly adds to capacity
- Extend the loan term — 30 years gives higher capacity than 25
- Shop lenders — different banks apply different HEM benchmarks
Next step: calculate your stamp duty
Know your borrowing power? Now see how much stamp duty and upfront costs to budget for.