Borrowing Power Calculator
Wondering how much you can borrow for your dream home? Our Borrowing Power Calculator helps you estimate your loan capacity based on your income, expenses, and financial commitments. Whether you’re a first-time buyer, upsizing, or investing, this tool gives you a quick snapshot of your borrowing potential — so you can plan with confidence.
How the borrowing power calculator works
Our calculator uses a standard formula based on lender guidelines to estimate your borrowing power. It considers your total income (including salary, rental income, bonuses), your regular expenses, any existing debts (like car loans or credit cards), and the number of dependants you support.
Different lenders use different assessment models, so this tool gives you a general guide rather than a guaranteed amount. It’s a smart first step before applying for pre-approval or comparing home loans.
Why it’s important to understand your borrowing power
Knowing how much you could borrow helps you make confident financial decisions. Here’s how:
Get a Realistic Loan Estimate
See how much you may be able to borrow based on your personal financial situation.
Understand What Lenders Look At
Discover how your income, expenses, dependants, and debts impact your borrowing capacity.
Plan Your Property Search
Start looking at homes that fit your estimated loan size — and avoid overcommitting.
Speak to a Mortgage Expert When You’re Ready
We can help you understand property costs and guide you through the buying process from start to finish.
Frequently asked questions about the borrowing power calculator
What is borrowing power?
Borrowing power is the amount a lender may be willing to lend you for a home loan, based on your income, expenses, existing debts, and other financial factors. It helps you understand how much you could borrow before applying for a loan.
How is borrowing power calculated?
Our calculator estimates your borrowing power by looking at your income, monthly expenses, number of dependants, and existing financial commitments (like personal loans or credit cards). It applies a general lending formula to give you a helpful guide.
Is this borrowing power calculator accurate?
This tool provides a general estimate based on the details you enter. Actual lending decisions depend on your credit history, employment stability, and individual lender criteria. For a personalised borrowing assessment, speak with a mortgage broker.
Can I improve my borrowing power?
Yes. Reducing personal debts, increasing your income, lowering monthly expenses, or applying jointly with a partner may improve your borrowing power. A broker can help you explore strategies to boost your eligibility.
Does borrowing power differ between lenders?
It can. Each lender has its own assessment criteria and risk appetite. That’s why two lenders might offer different loan amounts — even for the same applicant. Working with a broker helps you compare across lenders.
What’s the difference between borrowing power and loan pre-approval?
Borrowing power is a general estimate based on your inputs. Pre-approval is a formal (but non-binding) commitment from a lender based on a full credit and financial review. Our calculator helps you decide whether you’re ready for that next step.
Ready to turn your estimate Into a plan?
Knowing your borrowing power is the first step — getting the right loan is the next. Our mortgage brokers will help you verify your loan eligibility, explore lender options, and find the best path to buying your next home or investment property.
Let’s make your next step easy, informed, and stress-free.
