Borrowing PowerCalculator
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.
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See how much you can borrow
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.
- 1
Income
Your gross income from employment, self-employment, rent, investments and other acceptable sources. The calculator applies the same type of assessment lenders use.
- 2
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.
- 3
Existing debts
Credit cards, personal loans, car loans, HECS and other commitments. These reduce the amount you can borrow for a home loan.
- 4
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.
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 big difference.
- 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
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 over time. Some strategies may include:
- Paying down or consolidating personal loans, car loans and credit cards
- Reducing credit card limits you don't really need
- Reviewing your day-to-day spending and trimming non-essential expenses
- Considering a longer loan term to reduce the assessed repayment
- Choosing a lender whose policy is more favourable for your income type
The right approach depends on your goals and timeframe. If you're buying your first home, upgrading, investing or refinancing in Sydney or the Hills District, we can review your situation and show you options across multiple lenders.
Borrowing power calculator FAQs
Is this borrowing power calculator accurate?
The calculator is designed to be a realistic guide and uses similar logic to many bank serviceability calculators. However, it can't take every lender policy into account. Your actual borrowing capacity may be higher or lower once a lender looks at your full application.
Do different banks offer different borrowing capacities?
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.
How much can I borrow on a $100,000 salary in Australia?
On a $100,000 gross salary with no existing debts, most lenders will approve somewhere between $500,000 and $650,000, depending on your living expenses, the lender's servicing buffer, and your other financial commitments. Lenders apply a 3% buffer above the loan rate, so your repayments are stress-tested at a higher rate. A broker can compare multiple lenders to find the most favourable borrowing capacity for your income profile.
Does HECS debt reduce my borrowing power?
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–$50,000 depending on the size of your debt.
Does a credit card limit affect how much I can borrow?
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–$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.
How do I increase my borrowing power for a home loan?
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.
Got questions or need help? Book a free call with us.
What to do next
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.
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“We'll match you to the right lender. No pressure, no obligation.”
Sumit · 13+ yrs · 50+ Lenders
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Free strategy call - no obligation
Get Expert Advice, Free
We'll call you to discuss your situation and loan options. No obligation, no credit check.
By submitting, you agree to our privacy policy and terms of service.
The people behind your strategy call
Sumit
Director & Senior Loan Specialist
Rohan
Asset Finance Specialist
Kathryn
Settlement & Client Liaison