How Much Can I Borrow? Home Loan Borrowing Power Calculator
Estimate how much you may be able to borrow for a home in Australia based on your income, expenses, existing financial commitments and household circumstances.
Use the Mortgage House Borrowing Power Calculator for an indicative estimate, then see what affects your result and what you can do next.
Helping Australians with home lending since 1986.
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How Much Can I Borrow for a Home Loan?
The amount you may be able to borrow depends on more than your salary. A lender may consider your income, household expenses, existing debts and credit commitments, dependants, loan term, interest-rate assumptions and other aspects of your financial circumstances.
Use the calculator below to obtain an indicative estimate.
Start with your borrowing position
Enter your income, expenses, existing commitments and household details below to receive an indicative estimate of how much you may be able to borrow.
Borrowing Power Calculator
Your estimate is a starting point
The result above is an indication only. The next sections explain what borrowing power means, what may affect the estimate and why an actual lending assessment may produce a different result.
What Is Borrowing Power?
Borrowing power, also called borrowing capacity, is an estimate of how much a lender may potentially be prepared to lend based on a customer’s financial circumstances and applicable lending criteria.
What Affects How Much I Can Borrow?
Income
Higher sustainable income may increase capacity, subject to other factors.
Living Expenses
Higher ongoing household expenses can reduce available servicing capacity.
Dependants
Financial responsibility for dependants can affect household expenditure assumptions.
Credit Cards
Existing credit facilities may affect borrowing capacity.
Personal Loans
Regular repayments can reduce available income.
Car Finance
Existing repayments form part of financial commitments.
HECS/HELP
Compulsory repayment obligations can affect disposable income.
Existing Mortgages
Existing debt and repayments can materially affect capacity.
Rental Income
Potential treatment depends on applicable lending policy.
Interest Rates
Interest-rate assumptions influence repayment and servicing calculations.
Loan Term
Loan term affects scheduled repayment amounts and total interest.
Credit History
Credit history may form part of an actual application assessment.
Deposit
Deposit size affects available lending structures but is not itself identical to borrowing capacity.
Borrowing Power Is Not the Same as Affordability
Borrowing Power
What a lender may potentially consider.
Affordability
What the customer can comfortably manage.
Loan Approval
A lender’s actual decision.
Property Budget
Borrowing capacity plus available contribution and other considerations.
Is Borrowing Power the Same as Pre- Approval?
No. A borrowing-power estimate is an indicative calculation. Pre- approval generally involves a more detailed assessment of the information provided to a lender.
Ready to discuss your borrowing position?
Your calculator result is an indication only. A Mortgage House lending specialist can review your income, expenses, existing commitments and home-loan goals, explain what may affect your borrowing position and help you understand the appropriate next step.
When You Are Ready For Pre-Approval Or A New Loan, Contact Your Mortgage House Lending Manager.
How Much Can I Borrow?
Understanding your borrowing power will help you choose the right home that meets your budget and what you can afford to repay. Your borrowing capacity will depend on various factors including your credit history.
When & How Long Will You Pay?
Check weekly, fortnightly or monthly loan repayments to see what works best for you. Understand the basics!
What Type of Loan Do You Want?
Select your variables to better understand your loan options. The better you understand loan features available to you, the more you can get out of your home loan depending on your credit history.
An easy way to get started!
No one likes going to the bank, so we have curated a way to show you your options easily! With 24/7 and online support available, your questions can be answered quickly.
Things you Should Know
How much can I borrow based on my income?
As everyone has different incomes and income streams, borrowing power differs from person to person. Factoring in your income combined with your spending can provide a rough estimate of the home you can buy. Our mortgage calculator can give you an idea on how much you are able to borrow to get the ball rolling onto buying a house.
How much can we afford to borrow?
Combining income with your partner or your family can increase your borrowing power and the capacity of your loan. If you are purchasing with your partner and it is the first time you are both buying a property, you may be eligible for the first home owners grant. It is an exciting time to purchase your first home! With our borrowing calculator, you can add your income and your partners with an option to see what a joint loan looks like. Easily change the toggles and see all your options with our borrowing calculator. Want to know more about buying your first home? Understand the ins and outs of buying your first home here.
How do you calculate the rate of borrowing?
At Mortgage House, we know everyone has different incomes, lifestyles and expenses. Understanding your borrowing power is the first step in starting your home loan journey. With the toggles to add income, expenses, length of loan and more, our borrowing calculator is a great tool to understand an estimate on the rate of borrowing. Check your borrowing power here!
What percentage of your income should you spend on mortgage?
A mortgage is a BIG investment, maybe the biggest you will ever make in your life. The repayments of a mortgage differ from person to person. Factoring in the purchase price of your home, your deposit, your expenses, your income and possible partner’s income, length of the loan and repayment frequency will all play a part in how much you repay per month, fortnight or week. Understand how your income plays a part in your mortgage options with this article. There is no definitive answer to how much you should spend on your mortgage, it will all depend on how much you can afford to spend. Check your borrowing power here!
How do you calculate borrowing capacity?
With innovative technology, Mortgage House can help you understand your borrowing power with our borrowing calculator. Asking yourself how much can I borrow for a home loan? creates a multitude of other questions. Factoring in your income, partner’s income, expenses, credit card debts and other forms of income will give you an estimate of how much you can borrow.
Using an online mortgage calculator is the ideal way to calculate your options. Simply move the toggles and add in your information to calculate your borrowing capacity here.
How do banks calculate borrowing capacity?
Banks factor in your whole life when determining if you are eligible for a loan. From credit card debt to your income, a mortgage broker and bank will assess your overall situation before determining your borrowing capacity. Be ready for the bank’s questions with our borrowing calculator so you’re not disappointed when it comes time for your loan options.
How much can I borrow with $60k?
With a $60,000 deposit, your options are great. Taking into account how much money you make before taxes, your monthly living expenses, including how much you spend on housing, food, transportation, clothes, etc. and your current debts and other loans will determine how much you can borrow.
Even though you have your deposit, if you don’t have a stable income, you may not be able to pay back your repayments. Understanding how your salary impacts your options is important. This article can help you better determine how the combination of a deposit and stable income impacts your home loan options.
How much can I borrow with a $50,000 deposit?
There is no definitive answer to this question. At Mortgage House we take into account an array of factors to determine how much you can borrow. Using our borrowing calculator is a good place to start!
Your salary plays a big part in determining the amount of your loan. This article explains how your salary impacts your loan.
How much can I afford with an $80k salary?
An $80,000 salary is a good starting point for a home loan. At Mortgage House, we factor in a range of variables including your income, expense and deposit. The bigger the deposit, the better and having an 80k salary is a good salary for a home loan.
Understand how much you can borrow with our borrowing calculator. This article explains how reliable and valuable borrowing calculators are when starting your home loan journey.
Can I borrow more money with a bigger deposit?
The simple answer is yes but you need to have your stable income. A bigger deposit opens up your options with purchasing a more expensive house or choosing a shorter home loan. If your family gives you your whole deposit and you don’t have a steady income to back up your repayments, your deposit is almost worthless.
At Mortgage House, we understand everyone’s circumstances are different and factors surrounding your income and expenses are just as important as your deposit. Realistically, the bigger your deposit the better as this does give you more options in your home loan! This article explains how much you can borrow with a 10% deposit.
What customers say
Before using Mortgage House, we tried another broker who made us feel like we weren't important enough for him to bother dealing with properly, and we always felt like we weren't getting the whole story. Jenny from Mortgage House was completely different. From the very beginning she kept us in the loop of everything that was happening, and always made sure she got back to us in a timely manner. Being completely new to this whole process she answered all questions we had and never made us feel like we were asking a dumb question. I don't think we would have been able to buy our first property without Jenny or Mortgage House. Thanks for everything!
Cannot recommend Michael Richardson from the Sutherland branch enough - he assisted us through the transition of refinancing a mortgage every step of the way. He was always available to talk through the options & guided us wherever he could with the documentation requirements. He visited our house after hours to accommodate us getting through what would normally have been an onerous task for 2 busy working parents trying to save some money on their home loan.
I refinanced and the process couldn't have gone more smoothly, great communication throughout the process made it stress free. All staff very professional and made jargon easy to understand. Not to mention a great highly competitive variable rate that the other lenders couldn't match. Have already highly recommended to friends.
Mortgage House were very helpful. I was extremely nervous about the process of refinancing however, Brij, my consultant made everything easy for me and was really supportive throughout the whole process. The process was also very quick. I would highly recommend Mortgage House.
Benefits of Being a Mortgage House Customer
- Quick and easy application process with less paperwork needed
- Unlimited and free redraws of additional repayments
- Variable and Fixed Rates with no penalties on fixed rate loans
- Innovative online services designed to assist you
Continue planning your home loan
Now that you have an indication of your borrowing position, you may wish to estimate possible repayments or compare available home-loan options.
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Borrowing Power Calculator
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What This Estimate Means:
This estimate is based on the information you entered and the assumptions used by the calculator.
Why Your Actual Borrowing Capacity May Differ:
An actual assessment may consider additional information, supporting documentation, lending criteria and your overall financial circumstances.
Important: This estimate is not loan approval or formal pre-approval.
Important Disclaimer: This is intended as a guide only. Details of terms and conditions, interest rates, fees and charges are available upon application. Mortgage House’s prevailing credit criteria apply. We recommend you seek independent legal and financial advice before proceeding with any loan. The Comparison Rate for each of the home loan products contained in this page is based on a loan of $150,000 over a 25 year term. Fees and charges may be payable.
WARNING: The comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. * This mortgage calculator shows indicative repayments based on 12/26/52 equal repayments for monthly/fortnightly/weekly options.
