This is an estimate of what a lender might advance you, based on your income, your commitments and a stress-tested rate. Treat it as a starting range: no two lenders assess the same application the same way.
Helps you work out: roughly how much a lender may let you borrow from your income and commitments.
Estimated Borrowing Capacity
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Repayment at Your Rate
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With your funds included we estimate the property price you could target: deposit + loan, less stamp duty and purchase costs.
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General advice warning
The results provided by this calculator are estimates only and should not be taken as personal financial advice. The calculations are based on the assumptions you have entered and do not take into account your personal objectives, financial situation or needs. Before making any financial decisions, we recommend you consult with a qualified financial adviser. Financial Elements PTY LTD (Corporate Credit Representative Number 499510) is an Authorised Corporate Credit Representative of BLSSA Pty Ltd (Australian Credit Licence 391237).
Borrowing estimates use a simplified serviceability model with a 3% assessment buffer and an indicative household expense floor — individual lenders will differ. This is not a loan offer or pre-approval.
Serviceability is a policy question rather than a formula. These are the three places where an estimate and the real answer usually part company.
Lenders test whether you could still afford the loan at a rate well above the one on offer — a buffer required by the regulator. That single assumption is the biggest reason your capacity is lower than a rate-based sum suggests.
Lenders apply a household expenditure benchmark based on your income, location and family size, and use the higher of that and what you declare. Spending less than the benchmark generally does not help; spending more than you declared will show up in your statements.
A credit card is usually assessed on a percentage of its limit whether you use it or not, and study debt, car loans, buy-now-pay-later accounts and school fees all reduce capacity. Closing an unused card is often the quickest way to move the number.
It is a guide. We apply a serviceability buffer and a standard expense assumption, but every lender uses its own assessment rate, expense benchmark and income shading. Real capacity between two lenders can differ by a hundred thousand dollars or more on the same application.
Cautiously. Overtime, bonus and commission income is typically shaded — often only a portion is counted — and usually needs a two-year history. Self-employed income is generally assessed on two years of tax returns, though some lenders will consider one.
Yes, but discounted — commonly by around 20% to allow for vacancy and costs. Some lenders also recognise negative gearing benefits in the assessment; others do not.
Yes. The compulsory repayment is treated as a commitment and reduces capacity while the balance stands. On higher incomes the effect can be significant.
Rarely. The maximum is what a lender will allow at an assessed rate, not what will feel comfortable when rates move or circumstances change. Most people are better off deliberately under it.
We will run your position across the panel and tell you who reads it most favourably — before an application ever touches your credit file.