Borrowing Capacity Calculator
Estimate your borrowing power for a home or investment property based on your income, expenses and existing commitments.
Answer around ten quick questions to estimate how much you could borrow, what's affecting your borrowing capacity and where there may be opportunities to improve it.
How lenders actually work this out
Lenders don't assess your application using today's interest rate alone. They generally test whether you could still afford your loan if interest rates were higher, while also allowing for living expenses, existing debts and only using a portion of your rental income.
This calculator follows a similar approach to provide a realistic estimate of your borrowing capacity rather than an overly optimistic figure.
This calculator includes
Frequently asked questions
Is this the same as a pre-approval?
No. It's an indicative estimate to help you set a realistic budget. A pre-approval is a lender's conditional commitment after they verify your income, expenses and credit - we can arrange that for you.
Why is the estimate lower than my income might suggest?
Lenders assess your repayments at a buffer above the actual rate, apply a minimum living-expenses figure, and only count part of any rental income. Credit card limits and HECS/HELP debts reduce it too - even with a spotless repayment history, a lender assesses the limit you could draw on, not just what you actually owe.
Does the expected rent increase what I can borrow?
Usually yes - lenders add most of the expected rent to your income, which can lift your borrowing power. They typically count around 80% of the gross rent to allow for vacancy and costs.
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Talk it through with Scott
These figures are a guide, not a guarantee, and they're not legal, financial, tax or credit advice. Book a free discovery call and get real numbers for your situation.