Borrowing Calculator

The Borrowing Calculator or How Much Can I Borrow Calculator provides you with an indication of how much Lenders are prepared to Lend according to your Income and Liabilities. Our Maximum Borrowing Capacity Calculator is mirrored to Mortgage Insurers parameters making it one of the most accurate estimators in the market today.



How Borrowing Calculator works?

The Home Loan Maximum Borrowing Capacity Calculator below provides you with an indication of how much you can borrow according to your Yearly Gross Income and also taking into account your monthly commitments.

This Borrowing Calculator also factors in tax payable and the average living expenses according to the number of adults and dependants input in the relevant fields.

Note: Lending Institutions may apply different Lending Criteria when assessing Loans and the maximum available may vary.

Investment Income

When Mortgage Insurers and Lending Instituions consider any Investment Income, they generally only assess 80% of the total of your Investment return for borrowing capacity purposes. By inputting the total investment income earned, the calculator will adjust the figure to suit.

Assessment Interest Rate

When it comes to assessing your maximum borrowing capacity, it should be noted that the rate is loaded by 1.5 on top of the current Standard variable rate. In particular if your borrowings are above 80% LVR, mortgage insurers would need to sign off on the home loan. What this means is that without LMI sign off, the Lender will not approve your Home Loan.

We always recommend that you obtain a Pre-Approval prior to going out searching for your next home.

To use this Maximum Borrowing Capacity Calculator you need to input the following:

  • Your Gross Annual Incomes
  • Credit Limits
  • No. of Dependants
  • Current Monthly Liabilities
  • Loan Term
  • Interest rate

Click the CALCULATE button for the result.


There are also a number of Assumptions that need to be taken into consideration:

Interest Rate Assumption

Borrowing Calculator assumes hat the Interest rate does not vary during the period of the Home Loan. In accordance if your Home Loan is based on the Standard Variable Rate, then this would mean that as market conditions change, then so does your interest rate, and the amount of your regular payment.

Yearly Assumptions

How Much Can I Borrow Calculator assumes that the year comprises of 364 days and not 365 days and further does not take into account leap years within the Home Loan period. Further it is assumed that all months are equal and do not vary. This would affect the interest charged on the home loan, and vary the end result.

Regular Repayment Assumption

Borrowing Calculator provides results on regular monthly payments. It does not take into account week or fortnightly repayments. This would mean that there would be a slight variation to the end result as interest is calculated daily.


Disclaimer - This How Much Can I Borrow Calculator is not a tool which should be viewed as a quote or pre-approval for a home loan and you should seek the appropriate advice prior to taking out a home loan. Read full disclaimer.