RyRo Loan Centre

Free home loan calculator

Borrowing Power Calculator

Find out how much you can borrow for your home loan based on your income, expenses, and financial situation. Understand your borrowing capacity before you start house hunting.

Sumit Joshi, principal broker at RyRo Loan Centre

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What lenders will really lend you, checked by a broker.

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Updated November 2026

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Some of the banks and lenders we compare for you

  • Commonwealth Bank
  • Westpac
  • NAB
  • ANZ
  • St.George
  • Bank of Melbourne
  • Suncorp Bank
  • BOQ
  • Great Southern Bank
  • Beyond Bank
  • People First Bank (formerly Heritage Bank)
  • Teachers Mutual Bank
  • Hume Bank
  • IMB
  • Newcastle Permanent
  • QBANK
  • UniBank
  • Bank Australia
  • BankSA
  • Credit Union SA
  • Macquarie
  • ING

Borrowing power

See how much you can borrow

Last updated: November 2026

This calculator estimates your borrowing capacity based on your income, living expenses, existing debts and current interest rates. It uses lending criteria similar to those used by banks and lenders, so you get a realistic picture before you start house hunting or apply for pre-approval.

Whether you're a first home buyer, upgrading, or investing, knowing your number helps you set a budget and compare properties with confidence. Results are indicative only, each lender applies its own servicing rules and policy. For a figure tailored to your situation, use the form at the top of this page for a free strategy call with no obligation.

4 things the calculator uses

  • Income

    Your gross income from employment, self-employment, rent, investments and other acceptable sources. The calculator applies the same type of assessment lenders use.

  • Living expenses

    Your declared living expenses (e.g. household costs, transport, insurance). Lenders use benchmark or declared figures, whichever is higher, so we reflect that approach.

  • Existing debts

    Credit cards, personal loans, car loans, HECS and other commitments. These reduce the amount you can borrow for a home loan.

  • Interest rate and buffer

    An assumed interest rate and buffer so your borrowing power is tested at a higher rate than today's headline rate, in line with lender serviceability rules.

Borrowing Power Calculator

Find out how much you can borrow for your home loan based on your income, expenses, and financial situation. This calculator helps you understand your borrowing capacity before you start house hunting.

Who is applying?
a year
a month
% a year
More details(optional, 6)
a year
a year
a month

Your indicative range

You could borrow around

$489,000 to $541,000

Lower figure: stricter assumptions. Higher: more generous ones.

Rate the loan is tested at
9.00% a year
Repayment at your 6% rate
$2,933 to $3,246 a month
How we worked it out
Income after tax
$6,457 a month
Living expenses used
$2,100 to $2,520 a month
Debts and card limits
$0 a month

A range, not a single figure, because every lender assesses this differently. The lower number uses stricter assumptions and the higher one more generous ones. No lender has approved it.

Assumptions and sources
AssumptionStricterMore generous
Bonus and overtime counted50%80%
Rental income counted70%80%
Card limit as a monthly repayment3.8%3%
Living cost benchmark$2,520/mth$2,100/mth
Debt-to-income cap6x incomeNone
Rate buffer+3 points+3 points
  • Tax uses the ATO 2026-27 resident rates, the low income tax offset, the 2% Medicare levy and HECS or HELP repayments. Each applicant is taxed as a single person.
  • Living costs are the greater of what you enter and the benchmark. Lenders use the Household Expenditure Measure, which is not public, so the benchmark is our conservative stand-in.
  • The loan is 30 years, principal and interest, tested at your rate plus the APRA buffer of 3 percentage points. Rental income has no deductions taken off. Fees, stamp duty and your deposit are not included.
  • Estimate only, not a loan offer or financial advice. Each lender uses its own servicing calculator and policy, so your real figure can sit outside this range.

Figures last checked against:

This is an estimate, not financial advice. Results are a guide only. Speak to a broker for accurate figures based on your situation.

Free, no obligation. Your numbers go with your enquiry.

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Got your number?

Find out what a lender will actually lend you

The calculator uses one set of assumptions. Sumit runs your income, expenses and debts through real lender policy and shows you which lenders give you the most room, before you make an offer. Free, no obligation. We generally respond within an hour.

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Check my borrowing power

No obligation and no credit check.

From 360+ Google reviews
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Borrowing power check
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Broker fees on home loans
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Quick answer

How much can I borrow for a home loan?

As a rough guide, most lenders lend 5 to 6.5 times your gross annual income. On a $100,000 salary with no major debts, that is about $500,000 to $650,000. Your living expenses, debts, dependants and the lender's serviceability buffer move you up or down that range.

Your gross annual income: the rough range most lenders will lend
5 to 6.5×
Source: General lender practice; policies vary
The buffer added to your rate when lenders test your repayments
+3%
Source: APRA serviceability buffer
How credit cards are counted: the limit, not the balance owing
Full limit
Source: General lender practice
Of rental income many lenders count towards your borrowing power
70% to 80%
Source: General lender practice; policies vary

Using the tool

How this borrowing power calculator works

This borrowing power calculator gives you an estimate of how much you may be able to borrow for a home loan in today's lending environment. It looks at your income, living expenses and debts to work out a realistic home loan limit based on common lender serviceability rules used in Sydney, the Hills District and across NSW.

While this tool is a great starting point, every bank and lender has slightly different credit policy. Things like overtime, bonuses, casual income, family benefits, rent, credit card limits and existing loans can change your borrowing capacity from one lender to the next. That's where working with an experienced mortgage broker can make a significant difference.

Use it to

  • Get a quick estimate of your maximum home loan borrowing capacity
  • Understand how income, expenses and debt affect how much you can borrow
  • Compare different scenarios before you speak with a bank
  • Use the result to set a realistic price range for your property search
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Sumit · 1:35
What banks look at before they lendSumit Joshi, RyRo Loan Centre · Sumit on income, debts and savings

By salary

How much can I borrow on a $100,000 salary?

On $100,000 a year with no major debts, a rough guide is $500,000 to $650,000. Here is the same 5 to 6.5 times guide at other incomes. Use household income if you are buying with a partner.

Rough borrowing range by gross annual income
Gross incomeLower guide (5×)Upper guide (6.5×)
$80,000$400,000$520,000
$100,000$500,000$650,000
$120,000$600,000$780,000
$150,000$750,000$975,000
$200,000$1,000,000$1,300,000

Illustration only, using the rough guide in our FAQs below. Assumes no major debts. Expenses, dependants, HECS, credit card limits and each lender's policy change the real figure.

House keys on a house-shaped key ring held over cash and a wallet
Your borrowing power and your deposit together set your price range. Photo: Jakub Żerdzicki / Unsplash

Want your exact range?

Tell us your income, debts and deposit. We will check it against several lenders, free.

Check my borrowing range

Free. No obligation and no credit check.

The six factors

What affects your borrowing power?

Borrowing power is determined by how much surplus income you have after living expenses and existing debt repayments. The main factors lenders look at are:

  • Income

    Lenders accept PAYG salary, self-employed income (usually averaged over two years), rental income (typically at 70% to 80%), overtime and bonuses (if consistent), and government benefits such as Family Tax Benefit. The type and stability of income matters, some lenders are more generous with certain income types than others.

  • Living expenses

    Lenders apply the Household Expenditure Measure (HEM) as a minimum benchmark. If your declared expenses are higher than HEM, they use your figure. More dependants = higher HEM = lower borrowing power.

  • Existing debts

    Every debt reduces what you can borrow. Credit cards are assessed at the full limit (not balance), car loans at their repayment, and HECS-HELP based on the mandatory repayment rate for your income. Clearing debts before applying can substantially increase your capacity.

  • Number of dependants

    Each dependant increases the HEM benchmark lenders apply, reducing net surplus income. Lenders treat different household structures differently.

  • LVR (loan-to-value ratio)

    Borrowing above 80% of the property value triggers Lenders Mortgage Insurance (LMI) and may restrict which products and lenders are available to you, though LVR doesn't directly cap your borrowing capacity.

  • Serviceability buffer

    APRA requires lenders to assess your repayments at your contract rate plus 3%. This means if your loan rate is 6%, repayments are stress-tested at 9%, which can significantly reduce the approved loan amount compared to face-value calculations.

The serviceability test

How do lenders calculate your borrowing capacity?

The serviceability assessment works like this: lenders take your verified gross income, subtract the HEM living expense benchmark (or your declared expenses if higher), subtract repayments on all existing debts, and then calculate the maximum loan amount whose stressed repayment fits within what's left.

Different lenders apply different HEM tiers based on household size, postcode and income level. They also shade or discount certain income types, for example, one lender may accept 100% of overtime while another only accepts 50%. This is why the same borrower can get very different results from different lenders, and why using a mortgage broker who knows each lender's policy in detail can make a real difference to your outcome.

  1. Step 1

    Verified gross income

    Payslips, tax returns and other income, with some types shaded.

  2. Step 2

    Less living expenses

    HEM benchmark or your declared expenses, whichever is higher.

  3. Step 3

    Less existing debts

    Repayments on loans, cards at their full limit, and HECS.

  4. Step 4

    Maximum loan

    The largest loan whose repayment, tested at your rate plus the buffer, fits what is left.

Sumit · 1:18
Cheaper rate or the right strategy?Sumit Joshi, RyRo Loan Centre · Sumit on what clients ask first

Clients on what they could really borrow

  • Parth

    3 years ago on Google

    Google

    This has been my third loan with Sumit and his team over the past 6-7 years. Sumit and his team are one of the best out there. Went above and beyond to assist us with our loan application. Very approachable, patiently listens and responds to any queries that you may have. In this tight lending market + paperwork issues that we were facing, Sumit was effortlessly able to get us the highest possible approval at a lower borrowing rate compared to what some of my peers have received.

    Parth

    Google3 years ago on Google

    This has been my third loan with Sumit and his team over the past 6-7 years. Sumit and his team are one of the best out there. Went above and beyond to assist us with our loan application. Very approachable, patiently listens and responds to any queries that you may have. In this tight lending market + paperwork issues that we were facing, Sumit was effortlessly able to get us the highest possible approval at a lower borrowing rate compared to what some of my peers have received.

  • Harjinder Attar

    4 years ago on Google

    Google

    Sumit joshi sir is very helpful. He helped us alot to get our first home loan. We got loan more than our expectation. We highly recommend sumit joshi sir and there team.

    Harjinder Attar

    Google4 years ago on Google

    Sumit joshi sir is very helpful. He helped us alot to get our first home loan. We got loan more than our expectation. We highly recommend sumit joshi sir and there team.

  • Anthony Richardson

    2 years ago on Google

    Google

    I needed some idea of what I could borrow. Sumit was very professional, thorough and clear in his questions. He provided me with the information I required. I am now in a much better position to make future plans regarding my mortgage situation.

    Anthony Richardson

    Google2 years ago on Google

    I needed some idea of what I could borrow. Sumit was very professional, thorough and clear in his questions. He provided me with the information I required. I am now in a much better position to make future plans regarding my mortgage situation.

Read all 360+ Google reviews

Worked examples

Borrowing power worked examples

Three quick illustrations of the rules above. They are not client figures or lender quotes, and the rate used is an example, not a rate on offer.

The salary rule of thumb

One buyer on $100,000 gross, no car loan, no credit cards.

At 5×
$500,000
At 6.5×
$650,000

Expenses, dependants and lender policy decide where in that range you land.

An unused credit card

A $10,000 limit you never use still counts as a debt.

Card limit
$10,000
Borrowing power lost
$40,000 to $60,000

Cancel or cut the limit before you apply, not after.

The 3% buffer

A $600,000 loan over 30 years, principal and interest, at an example 6% rate.

Repayment at 6%
$3,597/month
Tested at 9%
$4,828/month

The lender checks you can afford about $1,230 a month more than you will pay.

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Borrow more

How to improve your borrowing power

If the calculator shows a lower amount than you hoped for, there are often practical ways to increase your borrowing power. Some strategies include:

  • Paying down or closing personal loans, car loans and credit cards
  • Reducing credit card limits you don't use, even a $5,000 limit reduction can add $20,000+ to your maximum loan
  • Reviewing your day-to-day spending to reduce declared living expenses
  • Choosing a lender whose policy is more favourable for your income type
  • Applying with a co-borrower to combine incomes
  • Considering a longer loan term to reduce the assessed monthly repayment

The right approach depends on your goals and timeframe. Use our loan repayment calculator to see how different loan sizes translate to monthly repayments, and book a free strategy call to find the most favourable lender for your situation.

Which change helps the most?

Start with the debts that cost you the most borrowing power for the least money: unused credit card limits and small personal loans. Then look at your spending in the three months before you apply, because lenders read your bank statements. Our guide on how to increase your borrowing power goes through each step.

Getting pre-approval once you know your number

When the number works, a pre-approval turns it into a figure a lender has looked at. Our home loan pre-approval guide covers what you need. If your pay includes overtime or commission, run your payslip through the YTD income calculator first.

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Sumit · 0:47
Four tips for the best chance of approvalSumit Joshi, RyRo Loan Centre · Sumit on income, deposit, credit and debts

Sound familiar?

Borrowing power situations we help with

The calculator gives everyone the same maths. Lenders do not. Here is what usually holds the number down, and what we do about it.

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  • First home buyer setting a budget

    The challenge: You have a deposit saved but no idea what price range a lender will back, so you do not know which open homes to go to.

    How we handle it: We run your numbers through several lenders, check the first home buyer schemes you may qualify for, and set a price range you can bid to.

    Help for first home buyers Set my first home budget

  • Upgrading to your next home

    The challenge: You want to buy before you sell, or you are not sure how your current loan and equity change what you can borrow.

    How we handle it: We work out your borrowing power with your existing loan in the picture, how much equity you can use, and how to time the sale and purchase.

    Using your home equity Check my next home budget

  • Credit cards and car loans

    The challenge: Your credit card limits, a car loan or buy now pay later accounts are pulling your borrowing power down more than you expected.

    How we handle it: We show you which debts cost you the most borrowing power and which to reduce or close first, so the change counts before you apply.

    Home loans with a broker See which debts to clear

  • Carrying a HECS-HELP debt

    The challenge: Your HECS repayment is counted against your income, and you are not sure whether to pay it down or keep saving your deposit.

    How we handle it: We compare how lenders treat your HECS repayment and show you whether paying it off before you apply would change your result.

    Income gross up calculator Check my HECS impact

  • Self-employed or variable income

    The challenge: Overtime, commission, casual hours or business income means one bank counts much less of your pay than you actually earn.

    How we handle it: We match you to lenders whose income policy suits the way you are paid, and look at low doc options when your returns are not ready.

    Specialist lending options Check my income

  • A bank offered less than you need

    The challenge: Your own bank came back with a lower figure than you hoped, and you do not know if that is the market or just that bank.

    How we handle it: We work out why that bank capped you, then take your file to lenders whose servicing policy suits your income, expenses and debts.

    Book a free strategy call Get a second opinion

Buying in the Hills? Our Norwest office runs borrowing power checks for buyers from Castle Hill to Kellyville every week, so you can sit down with a mortgage broker in the Hills District who knows what local prices mean for your budget.

Buyer reviews

What buyers say after we checked their numbers

Google

5.0

From 360+ Google reviews

Sumit · 2:56
Approved in days after her broker went quietSumit Joshi, RyRo Loan Centre
Read all 360+ Google reviews

  • Praveen Kumar

    4 years ago on Google

    Google

    It has been awesome experience with Sumit for my house loan process. He was helping and guiding me from the last 6-8 months and advising on how much worth I can go for based on the financials. Everything was taken care and discussed over the phone and the loan process and approval was pretty seamless. Highly recommend Sumit and thank you so much in helping for securing our first home.

    Praveen Kumar

    Google4 years ago on Google

    It has been awesome experience with Sumit for my house loan process. He was helping and guiding me from the last 6-8 months and advising on how much worth I can go for based on the financials. Everything was taken care and discussed over the phone and the loan process and approval was pretty seamless. Highly recommend Sumit and thank you so much in helping for securing our first home.

  • chris sukumar

    5 months ago on Google

    Google

    Sumit at Ryroloan Centre made our first home possible Five stars for Sumit Joshi at Ryroloan Centre. As first home buyers we had no idea where to start. Sumit was easy to contact from day one. He picked up calls, replied to texts fast, and explained everything in simple terms. He secured us a really good rate that beat what our bank offered. The whole pre-approval and settlement process was smooth because he stayed on top of every document and deadline. I want to thank Dean and whole team thank you all. Couldn’t recommend Sumit more highly if you’re a first home buyer.

    chris sukumar

    Google5 months ago on Google

    Sumit at Ryroloan Centre made our first home possible Five stars for Sumit Joshi at Ryroloan Centre. As first home buyers we had no idea where to start. Sumit was easy to contact from day one. He picked up calls, replied to texts fast, and explained everything in simple terms. He secured us a really good rate that beat what our bank offered. The whole pre-approval and settlement process was smooth because he stayed on top of every document and deadline. I want to thank Dean and whole team thank you all. Couldn’t recommend Sumit more highly if you’re a first home buyer.

  • Varsha Mehra

    2 years ago on Google

    Google

    It was a wonderful experience dealing with Sumit Joshi and his team. Sumit was very informative, helpful, responsive and helped us purchase our new home. He was always available to answer any questions we have and really helped streamline the process for us. He guided us and being first home buyers we were completely amateurs and confused. Sumit explained things to us and made sure we understood them. Thank you.

    Varsha Mehra

    Google2 years ago on Google

    It was a wonderful experience dealing with Sumit Joshi and his team. Sumit was very informative, helpful, responsive and helped us purchase our new home. He was always available to answer any questions we have and really helped streamline the process for us. He guided us and being first home buyers we were completely amateurs and confused. Sumit explained things to us and made sure we understood them. Thank you.

  • Laura

    3 years ago on Google

    Google

    A huge thanks to Sumit & the team for helping secure our first home loan. As first home buyers Sumit gave us the confidence and trust that he had everything under control & would get us the best home loan tailored to our needs. He has vast knowledge & many years of experience which helped make the process run smoothly.

    Laura

    Google3 years ago on Google

    A huge thanks to Sumit & the team for helping secure our first home loan. As first home buyers Sumit gave us the confidence and trust that he had everything under control & would get us the best home loan tailored to our needs. He has vast knowledge & many years of experience which helped make the process run smoothly.

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FAQ

Borrowing power calculator FAQs

Salary multiples, how lenders assess you, credit cards and HECS, and how to borrow more.

10 answers in 4 topics

How much you can borrow

  • As a rough guide, most lenders will lend between 5 and 6.5 times your gross annual income, depending on your expenses, debts and the lender's credit policy. On a $100,000 salary with no major debts, you might borrow $500,000 to $650,000. On $150,000 combined with a partner, the range is typically $750,000 to $975,000. Use the calculator above to get a figure based on your specific situation.

  • When you apply together, lenders add both incomes, then take off the living expenses for your household and the repayments on both of your debts. A second income usually lifts your borrowing power, but a partner with a car loan, HECS or high credit card limits brings those debts too. Run the calculator with both incomes and both sets of debts, and talk to a broker if one of you is self-employed, part time or on leave.

  • They are a good starting point, not an approval. An online calculator uses one set of assumptions for the rate, the buffer and living expenses. Each lender runs its own servicing calculator with its own policy on income shading, expense benchmarks and debts, so the real figure can be higher or lower. A broker runs your numbers through several lenders' calculators before you apply, so you know your range before you make an offer.

How lenders assess you

  • The main factors are: gross income (including all accepted income types), living expenses (lenders use HEM benchmarks or your declared figures; whichever is higher), existing debts (credit cards, car loans, personal loans, HECS), number of dependants, the interest rate and the 3% serviceability buffer lenders must apply. Your LVR (loan-to-value ratio) affects which lenders and products are available, though not borrowing capacity directly.

  • Lenders use a serviceability assessment. They take your verified gross income, subtract living expenses (using HEM benchmarks or your declared figures), subtract repayments on existing debts, then calculate the maximum loan where the stressed repayment (at your rate plus a 3% buffer) fits within what remains. Every lender applies slightly different policies on income shading, HEM tiers, and credit card treatment. This is why capacities vary significantly between lenders.

  • Yes. Two banks can look at exactly the same income and expenses and come back with very different maximum loan amounts. That's why it helps to have a mortgage broker compare options and find lenders that are more favourable for your situation, rather than relying on one bank's calculator.

Debts and HECS

  • Yes, significantly. Most lenders assess your credit card limit (not just your outstanding balance) as a potential debt. A $10,000 credit card limit can reduce your borrowing power by $40,000 to $60,000 depending on the lender. Reducing or closing unused credit card limits before applying for a home loan can meaningfully increase your borrowing capacity.

  • Yes. Lenders treat HECS-HELP debt as an ongoing liability even though repayments are income-contingent. Most lenders factor in your annual compulsory repayment amount (based on your income) when calculating how much you can borrow, which typically reduces your borrowing capacity by $20,000 to $50,000 depending on the size of your debt.

Borrowing more

  • The most effective strategies are: paying down or closing credit cards and personal loans, reducing credit card limits, paying off car loans, minimising declared living expenses, and choosing a lender whose credit policy is more favourable for your income type (e.g. some lenders shade overtime or casual income more generously than others). A mortgage broker can show you which lenders will give you the highest borrowing capacity for your profile.

  • Often yes. Different lenders can return borrowing capacities that vary by $50,000 to $150,000 or more for the same borrower. A broker compares policies across 30 to 50+ lenders to find which will give you the highest capacity and the most suitable product. They can also help you structure your application (for example, treating overtime or rental income more favourably) in ways that can meaningfully increase your approved amount.

What to do next

Related guides

Once you know your borrowing power, use our other tools to plan your purchase or refinance, or explore our Home Loans overview and First Home Buyers overview to see how your numbers translate into real loan options and government schemes.

Already own a home? Your equity changes the answer

Borrowing power sets the ceiling, but equity is what covers the deposit on your next place. This guide shows how the two work together.

Free strategy call

The people behind your strategy call

Sumit and the team run your income, expenses and debts through real lender policy, then show you which lenders give you the most room. 5.0 stars from 360+ Google reviews and 2,500+ clients helped. We generally respond within an hour.
Sumit Joshi, principal broker at RyRo Loan Centre

Get your borrowing power checked

What lenders will really lend you, checked by a broker.

Free, no obligation. We generally respond within an hour.

Google5.0360+ Google reviews

We generally respond within an hour. Prefer to pick a time? Book your strategy call online.

Sumit Joshi of RyRo Loan Centre smiling in a blue suit and gold tie

Sumit Joshi JP

Principal broker, Credit Rep 446824

  • Your borrowing power checked against several lenders
  • First home buyer schemes and upgrades covered
  • Free for home loans: the lender pays us
Sumit · 2:59
From two properties to four in six monthsSumit Joshi, RyRo Loan Centre

More videos from Sumit

From 360+ Google reviews
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Broker fees on home loans
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Borrowing power check
Free
“Sumit was instrumental in securing our first home whilst maintaining a constant channel for communication. Very patient with all our queries. He helped navigate the first home buyer provisions available to us and provided us with the product we were after. Can highly recommend.”
Rene Rose Mae Tagle · Google review

Sumit Joshi JP, Credit Rep 446824. AFG Award Winner 2013 to 2019 and AFG Excellence Awards finalist 2022 to 2026. Calculator results are estimates. Each lender applies its own servicing policy.

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