How Much Can I Borrow Calculator
Estimate your Australian mortgage borrowing power — including the APRA 3% serviceability buffer, income, expenses, and existing debts.
| Max Property Price (80% LVR) | $0 |
| Monthly Repayment on Max Loan | $0 |
| Combined Net Monthly Income | $0 |
| Serviceability Rate (with buffer) | 0% |
How Australian Banks Calculate Borrowing Power
Your borrowing power — the maximum amount a lender will lend you — is determined by your income, expenses, existing debts, and the APRA serviceability buffer. This calculator provides a realistic estimate using the same principles that Australian lenders apply, though actual figures will vary between lenders. Method: we take your net monthly income after tax and Medicare, subtract your living expenses and existing debt repayments, and treat the surplus as the amount available to repay a loan — assessed at your interest rate plus the APRA 3% buffer over your chosen term.
The APRA Serviceability Buffer
Since October 2021, APRA requires all authorised deposit-taking institutions (banks, credit unions, building societies) to assess home loan applications at the actual interest rate plus 3%. This is the serviceability buffer. If the loan rate is 6.5%, your repayment capacity is tested at 9.5%. This significantly reduces borrowing power compared to pre-buffer calculations, but it protects borrowers from overcommitting if rates rise.
How Net Income Is Calculated
This calculator estimates your after-tax income using the 2026–27 Australian income tax brackets and Medicare levy. For most salaried employees, this gives a close approximation of take-home pay. Lenders may treat certain income types differently — for example, overtime, bonuses, and rental income are often assessed at 80% of their stated value to account for variability. Self-employed income is typically averaged over two years.
The Role of Living Expenses
Lenders assess declared living expenses against the Household Expenditure Measure (HEM) — an independent benchmark of minimum living costs based on household size and location. Your borrowing power is constrained by whichever is higher: your declared expenses or the relevant HEM. Being realistic about your spending helps lenders give you an accurate assessment and prevents financial stress after settlement.
Maximum Property Price at 80% LVR
The maximum property price shown assumes you borrow 80% of the property value (an LVR of 80%), meaning you have a 20% deposit plus enough for stamp duty and other purchase costs. At 80% LVR, no Lenders Mortgage Insurance (LMI) is required, which can save thousands. If you have a smaller deposit, your purchasing power may extend further but LMI costs apply. Use our Property Borrowing Power calculator for deposit-specific scenarios.