Calculators
Borrowing Capacity Calculator
Estimate how much you could borrow based on your income, expenses and debts.
Estimated borrowing capacity
$885,000
Repayments of about $5,362/mth at 6.09%
- Net household income
- $11,339/mth
- Living expenses used
- $3,850/mth
- Credit card commitment (3.8% of limits)
- $304/mth
- Surplus available for a loan
- $7,185/mth
- Assessment rate
- 9.09%
Lenders test your repayments at your rate plus a 3% serviceability buffer. They use the higher of your stated living expenses and a benchmark. Tax is based on 2025–26 resident rates plus the Medicare levy.
Each lender’s policy differs, often by $100,000 or more for the same household. This is an estimate, not an approval.
Understand the numbers
Borrowing Capacity Explained
Your borrowing capacity is the maximum a lender is willing to lend you, based on whether you could still afford the repayments if interest rates rose. Lenders look at your income, living expenses, existing debts, credit card limits and number of dependants, then test repayments at an assessment rate usually around 3% above the actual rate. Different lenders use different calculators, so the amount you can borrow can vary noticeably from one lender to the next.
7 min readProperty InvestingUnderstanding Serviceability
Serviceability is a lender's test of whether you can afford the repayments on a loan, both now and if rates rise. The lender takes your income, subtracts your living expenses and the repayments on all your debts, then checks there's money left over, using an assessment rate that is higher than the actual rate. Credit card limits, HECS-HELP debt, dependants and how your income is earned all affect the result. It's often the real limit on borrowing, more than deposit or equity.
7 min readFundamentalsHow Lenders Assess Income
Lenders assess income by looking at how reliable and ongoing it is. Base salary from permanent work is usually counted in full, while overtime, bonuses, commissions and rental income are often shaded, meaning only a portion is counted, commonly around 80%. Self-employed and casual income usually needs a longer track record. Each lender has its own rules, so the same income can produce different borrowing amounts with different lenders.
7 min readBook a discovery call
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