Calculate your borrowing power



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Home loan comparison

Lender

Variable
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loans.com.au – Variable Home Loan (LVR < 90%)

    Variable
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    HSBC – Home Value Home Loan (Principal and Interest) (LVR < 80%)

      Fixed
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      Newcastle Permanent – Fixed Rate Home Loan (Principal and Interest) 1 Year

        Variable
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        Beyond Bank – Purple Basic Variable Home Loan (New Customer) (LVR 60%-80%)

          Variable
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          Athena – Straight Up Owner Occupied - Celebrate (LVR 50%-60%) (Principal and Interest)

            Fixed
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            IMB Bank – Fixed Rate Home Loan (Principal and Interest) 1 Year (LVR ≤ 80%)

              Variable
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              Liberty Financial – Liberty Low Rate Home Loan (LVR < 95%)

                Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of July 25, 2024. View disclaimer.

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                Calculator Assumptions: How much can I borrow?

                *Calculations are estimates and provided for illustrative purposes only. They do not take into account your personal circumstances, any product features, applicable fees or charges which may be payable. Different loan providers use varying lending criteria, and calculations are not an offer of credit, a quote or loan approval. The calculator calculates a maximum loan amount based on the information entered, the default values and rounds to the nearest dollar. The default values assist in giving an estimate of the factors which may determine the amount available for a loan. Default values: The loan term is assumed to be 30 years. Annual living expenses used are the higher of the amount you enter or the "Australian Household Expenditure Measure" figure as sourced from the Melbourne Institute - note it is assumed that these amounts do not change for the loan term. Maximum interest rate used is 6.50% p.a. for the loan term and repayments are made on a principal and interest basis. Negative gearing is not included.

                How Much Can I Borrow?

                Knowing how much money you can borrow is probably one of the first questions you should ask yourself when planning to buy a home. This helps you to adjust your property search depending on your budget.

                When using a Borrowing Power Calculator, here are some of the main borrowing power factors you need to know:

                Current Income

                Right off the bat, lenders will want to know how much you are earning. Your total income will help assess your mortgage repayments. It’s important to note your borrowing power could be higher when you purchase a property with another person because of the ability to make larger repayments.

                Lenders will also look into your debts and other commitments, such as car loans and personal loans, as this could possibly impact your repayment capabilities.

                Cash Deposit

                The amount of your deposit, as well as your amount of savings, both contribute to your borrowing capacity. This is often referred to as "genuine savings" - the money you’ve saved over a period of time.

                Assets

                Assets and investments, such as vehicles and investment properties, can help a lender with their decision to lend to you. These are used to help calculate your net worth, which is calculated by your assets minus liabilities.

                Mortgage Borrowing Power Calculator

                Using a Borrowing Power Calculator when purchasing a property gives you an idea of how much you can borrow for a loan. The amount may vary between lenders, however the accuracy of this calculator is relatively close.

                Below are some benefits of using the Borrowing Power Calculator:

                • Home loan borrowing calculators can help you determine whether you need to adjust your property search, budget and preferences

                • Borrowing calculators can often point out which current loan/s you may need to consider paying off to increase your borrowing capacity

                • With different repayment schedule options, mortgage borrowing calculators help you asses your total repayments once the loan is approved

                Borrowing Power Calculator FAQs

                It may be possible to borrow four-to-five times your salary, however it can depend on your amount and type of income.

                As well as your income, debt settlement and cutting down your expenses can be great ways to increase your borrowing power.

                You can include mortgage repayment interest, tax on property, operating expenses, and home repairs as investment property expenses.

                Home loan borrowing power calculators can be a good tool to estimate your borrowing capacity. Given your income and expenses, this tool can help you understand how much money you can borrow.

                Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. Rates correct as of 9 July 2024.

                ^The addition of offset sub-account means your comparison rate will change.

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