How much you can borrow depends on four things: your income, your living expenses, your existing debts and your deposit. Lenders also check you could still afford the repayments if rates rose, currently by about three percentage points above the rate you'd pay.
Salary, plus some or all of any overtime, bonuses, commission or rental income, depending on the lender and how long you've earned it.
Lenders compare your stated household expenses with a benchmark for similar households and use whichever amount is higher.
Car loans, personal loans, HECS and buy-now-pay-later all count. For credit cards, lenders count the limit, not the balance you owe.
A bigger deposit lowers the loan you need and can help you avoid lenders mortgage insurance.
Every lender has its own policy. One may count all your overtime, while another may count only part of it. Some lenders may also assess HECS repayments more generously than others. For the same borrower, the difference in borrowing capacity can be tens of thousands of dollars.
Online calculators, including ours, are a useful starting point, but they can’t account for every lender’s rules. A broker can compare your circumstances across multiple lenders and help you understand how much you could realistically borrow—and which lenders may be the right fit.
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Reducing or closing cards you don't use can lift your borrowing power straight away.
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Clearing a car loan or personal loan frees up income in the lender's assessment.
3
Matching your income type to the lender's policy can make a big difference.
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Buying with a partner, or with a family guarantee, can open up more options.
It can, because lenders count the compulsory repayments. How much it affects you depends on your income and the lender's policy.
Many do, at least in part, especially if you can show a history of earning them. Policies vary widely between lenders.
Each calculator uses different assumptions about expenses, rates and buffers. Treat them as a guide and talk to a broker for a real figure.
No. Using a calculator or talking to us doesn't touch your credit file. A credit check only happens when you apply.
This information is general in nature and doesn't take into account your objectives, financial situation or needs. Lending policies and regulatory settings can change. All loans are subject to lender approval, and terms, conditions, fees and charges apply.
Book a time and we'll check your borrowing power across lenders. It costs nothing and doesn't affect your credit score.
