Borrowing Power Calculator Guide
Estimate how much you can borrow for a home loan based on income, expenses, debts, credit cards and HECS/HELP.
Borrowing Power Calculator: How Much Can I Borrow for a Home Loan?
If you’re asking “how much can I borrow?”, you’re really asking a bigger question: How much will a lender let me repay comfortably—after expenses and existing debts—under their assessment rules?
This guide is written for Australian home loan scenarios (income, expenses and common lender assessment approaches).
Quick link: Use the tool → Borrowing Power Calculator
What “borrowing power” means (and why it’s not just your income)
Borrowing power (also called borrowing capacity) is an estimate of your maximum loan size based on what you can afford to repay.
Lenders generally consider:
- Total household income (salary + other income)
- Living expenses (declared expenses + a benchmark minimum)
- Existing debts (car loans, personal loans, credit cards)
- Student debt (HECS/HELP) where applicable
- An assessment rate (often higher than your actual rate)
That’s why two people on the same salary can get different results.
The 5 inputs that move borrowing power the most
1) Income (and what part of it counts)
Stable income like base salary usually counts more. Variable income (bonus/overtime) may be “shaded” (discounted) in assessments.
Tip: Enter base and bonus separately so your estimate stays realistic.
2) Living expenses (this matters more than people expect)
Borrowing power is extremely sensitive to monthly expenses.
A $500/month expense difference can shift borrowing capacity significantly over a 30-year term.
Action: Don’t understate expenses. A “nice number” won’t match real approvals.
3) Credit card limits (even if you owe $0)
Many lenders assess credit cards using the limit, not the balance.
A $20,000 limit can reduce borrowing power even if you pay it off monthly.
Action: Lower unused limits before applying (where suitable for you).
4) HECS/HELP (student debt)
HECS/HELP can reduce borrowing power because it affects assessed affordability.
If you have HECS/HELP: turn it on in the calculator.
5) Interest rate assumptions (actual vs assessed)
Your actual rate might be 6.x%, but lenders often assess at a higher buffered rate.
MoneyWiseCalc shows key assumptions so you understand what’s driving the estimate.
Borrowing power vs “maximum property price” (the step most people miss)
Borrowing power gives you a max loan.
But your maximum property price is usually:
Max property price = max loan + deposit − upfront costs
Upfront costs often include:
- Stamp duty
- Transfer / title registration fees
- Mortgage registration fees
- Other settlement-related costs
Useful tools:
How to increase borrowing power (fast, legitimate levers)
Common levers buyers can control:
- Reduce credit card limits (even unused cards)
- Pay down personal/car loans
- Lower recurring expenses (subscriptions, BNPL commitments)
- Improve income stability (base salary, consistent work history)
- Adjust loan settings (term/type) to model scenarios
Test scenarios quickly → Borrowing Power Calculator
Why results differ from bank calculators
Different lenders use different:
- expense benchmarks and minimums
- shade rates for bonuses/allowances
- treatment of HECS/HELP and debts
- buffers/floors and policy limits
MoneyWiseCalc aims to be transparent about assumptions so you can see what’s moving your number.
Next step: check repayments for your likely loan
Borrowing power is step one. Repayments are step two.
Use:
- Home Loan Repayment Calculator
to see repayments, interest cost and the impact of extra repayments/offset.
Disclaimer
Results are estimates only and may vary by lender and your circumstances. Consider seeking independent professional advice