The FisCalc
// SERVICEABILITY

Borrowing Power
Calculator

Estimate how much you can borrow for a home loan. Uses APRA's serviceability buffer (loan rate + 3%) and accounts for your income, debts, and living expenses.Rates current as at 1 July 2025 · ATO FY2025–26

// APPLICANT_TYPE
Single or joint application

Your data stays on your device — nothing is stored or sent.

Estimated borrowing capacity
$571,810
Based on serviceability assessment at 9.24% (your rate + 3% APRA buffer)
Monthly repayment
$3,517
At 6.24% actual rate
Debt-to-income ratio
5.7×
Lender cap typically 6×

Your data stays on your device — nothing is stored or sent.

How APRA serviceability works: Australian banks must assess your ability to repay at a stress rate of 9.24% (your rate of 6.24% + 3% buffer, minimum 9%). This is a regulatory requirement, not a bank choice. Your calculated capacity uses $833 living expense buffer and assumes $2,500/mo living expenses.
// PROPERTY_PRICE_SCENARIOS
Maximum property you can target at different deposit sizes
Deposit %Deposit neededMax property priceLMI required?
5%$30,095$601,906Yes
10%$63,534$635,345Yes
20%$142,953$714,763No
25%$190,603$762,414No
// SERVICEABILITY_BREAKDOWN
Gross monthly income (×90%)$7,500
Less: Existing loan repayments$0
Less: Credit card commitment (3% of limits)−$300
Less: Living expenses−$2,500
= Available for new loan repayment$4,700
Assessment rate9.24%
Borrowing capacity$571,810
Estimate only. This uses a simplified serviceability model. Actual lender assessments vary and include additional factors such as employment type, rental income shading, HEM vs actual expenses, and individual credit policies. Numbers are illustrative — speak to a mortgage broker for a real pre-approval. Not financial advice.

Next Step

Speak with a Vetted Mortgage Broker

Explore structures to safely secure this rate configuration.

Estimated borrowing capacity: $571,810
Get Started →

🔒 Your inputs never leave your browser window. Calculations run entirely client-side.

How Lenders Calculate Your Borrowing Power

Australian lenders don't simply look at your income — they stress-test your ability to repay at a higher rate. Under APRA's serviceability guidelines, every lender must assess whether you can afford repayments at your actual loan rate plus 3 percentage points. If your mortgage rate is 6.2%, the bank checks whether your income can service the loan at 9.2%. This buffer, introduced after the 2019 Royal Commission, is why many borrowers are approved for less than they expect.

Credit card limits are another hidden drag. Lenders treat your entire approved credit card limit — not just the balance you carry — as a committed monthly liability, typically at around 3% of the limit per month. A $20,000 credit card limit reduces your assessed monthly surplus by $600, which can cut your borrowing power by $90,000–$120,000 before the bank looks at anything else. Cancelling unused cards before applying meaningfully improves your position.

Joint applications don't simply double the income — lenders assess two incomes but also two sets of living expenses using the Household Expenditure Measure (HEM). The net effect is almost always favourable; joint applicants typically borrow 30–50% more than a single applicant on the same combined income, because the HEM floor rises far less than the income total.

Frequently Asked Questions

Does HECS-HELP debt affect how much I can borrow?
Yes — significantly. Lenders include your compulsory HECS-HELP repayment as a committed expense, reducing your assessed net income. On a $70,000 salary, the 2025–26 repayment rate is 3.5%, adding roughly $2,450 per year ($204/month) to your committed outgoings. At a 6:1 debt-to-income ratio, that single line item reduces borrowing power by approximately $43,000. Voluntary prepayments before settlement can be worth modelling if your debt is small and your equity position is tight.
Does the 3% serviceability buffer apply to all lenders?
APRA's 3% buffer applies to all authorised deposit-taking institutions (ADIs) — the major banks, regional banks, building societies, and credit unions. Non-bank lenders (e.g. Liberty, Pepper, La Trobe) are not ADIs and are not bound by APRA's guidance, so some apply a lower buffer. This creates a meaningful difference in maximum borrowing capacity, but non-bank products typically carry higher interest rates that offset the serviceability advantage. The total cost of credit over a 30-year term often outweighs the higher initial loan amount.
What's the fastest way to increase my borrowing capacity?
The highest-leverage actions are: (1) cancel unused credit cards — each $10,000 limit removed can add $30,000–$50,000 in borrowing power; (2) pay off personal loans and car loans before applying, since their monthly commitments are assessed at face value; (3) increase your income through a pay rise, rental income, or a second applicant; and (4) reduce living expenses to below your bank's HEM benchmark. A mortgage broker can run a multi-lender pre-approval comparison to identify which lender's model suits your specific income and liability profile.
Next Step
Mortgage Repayment Calculator
See what your approved loan amount costs each month — P&I vs interest-only.
Calculate Repayments →
Plan Your Purchase
Home Purchase Cost Calculator
Model stamp duty, LMI, conveyancing, and inspection fees before you bid.
See All Costs →
General information only. This calculator provides estimates only and does not constitute financial advice. Borrowing capacity is determined by individual lender credit policies, not APRA guidelines alone. Consult a licensed mortgage broker or financial adviser (Australian Credit Licence holder) before making borrowing decisions.