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Borrowing power calculator

Lenders work out what's left of your after-tax income once living costs and debts are paid, then test a loan at your rate plus 3%. This runs the same test on your numbers.

By the Real Estate Insight team · Last reviewed 6 October 2026 · How we check our numbers

Income
$ / year

Before tax.

$ / year

Counted at 80%, as most lenders do.

Spending and debts
$ / month

Everything except rent and loan repayments: food, bills, transport, insurance, childcare. Lenders use the higher of your figure and their own benchmark.

$ / month

Car loans, personal loans, other mortgages.

$

Lenders count the limit, not the balance.

$

Balances of the loans above. Only used for the debt-to-income check.

The new loan
%
years

Indicative borrowing power

About $412,000

Repayments of $2,591 a month at your rate. The lender tests them at 9.45%, your rate plus APRA's 3 percentage point buffer.

How it's worked out, each month

Income after tax$6,457
Living costs and commitments-$3,000
Left to repay a loan$3,457

Many lenders also want some surplus left over after the repayment, so their figure can be lower.

Debt-to-income: 4.1 times income

Under the six-times line APRA watches: since 1 February 2026 banks can only write 20% of new loans at six times income or more.

About this estimate. General information, not a loan offer or credit assessment. Resident tax rates for 2026-27 including the Medicare levy, 2026-27 study loan repayments, rent at 80%, credit cards at 3.8% of the limit each month, principal and interest over the term. Lenders also use their own expense benchmark, add buffers for dependants and treat some income (bonuses, overtime, self-employment) differently, so their figure can be lower. Talk to a broker or lender for a real assessment.

How lenders work out what you can borrow

  1. Take your income after tax, the Medicare levy and any study loan repayment. Rental income usually counts at 80%.
  2. Take off living expenses, at least the lender's benchmark for a household like yours, and your other commitments: loan repayments and a percentage of every credit card limit.
  3. Work out the largest loan whose repayment fits in what's left, at your rate plus APRA's 3 percentage point buffer.
  4. Check the total against debt-to-income limits, and the deposit against the property price.

What moves the number

  • Rates. Every rise lowers borrowing power, because the buffer sits on top.
  • Credit card limits. Counted in full, used or not.
  • Study loans. The compulsory repayment comes out of income.
  • Living costs. Lenders use the higher of what you declare and their benchmark, which rises with income and dependants.
  • The term. A shorter term means higher repayments and a smaller loan.

Questions people ask

How much can I borrow on $100,000?
About $412,000 on a single $100,000 salary with $3,000 a month of living costs and no other debts, at 6.45% over 30 years. Lenders test the repayment at your rate plus 3 percentage points, so the figure falls quickly as rates rise.
What is the serviceability buffer?
APRA expects banks to check you could still repay if the rate rose 3 percentage points. On 28 May 2026 APRA said the buffer would stay at 3 percentage points.
How much do credit cards reduce borrowing power?
Lenders count 3% to 3.8% of your total card limits as a monthly expense, even with a zero balance. A $10,000 limit cuts the example above to $367,000. Closing or reducing unused cards before applying helps.
Does HECS-HELP debt affect how much I can borrow?
Yes. Lenders take your compulsory study loan repayment out of your income. On $100,000 that's $4,571 a year in 2026-27, which lowers the example to $367,000. It's the repayment that counts, not the balance.
What is the debt-to-income limit?
Since 1 February 2026, APRA limits each bank to writing 20% of its new owner-occupier and investor loans at six or more times the borrower's income. Above that line loans are still possible but harder to get.
How much can a couple borrow on $180,000?
About $869,000 on salaries of $100,000 and $80,000, with $4,500 a month of living costs and no other debts, at 6.45%.

Sources