Borrowing power calculator
Indicative home-loan borrowing capacity, HEM-aware and serviceability-buffered.
Plug in your income, expenses and existing debts to get a ballpark on what lenders are likely to approve. The calculator applies HEM as a floor on living expenses and the APRA 3% rate buffer for serviceability — the same logic banks use. The real range still depends on which lender you go to.
Borrowing power
Estimate how much you might be able to borrow.
Estimated borrowing power
$414,000
Results are estimates only. Calculated using a 9.00% assessment rate (3% buffer above your entered rate), which is standard industry practice. Every lender calculates differently — I can give you a precise figure.
Banks calculate this differently. Want me to give you a real-world estimate from my 30+ lenders?
Book a 15-min callBorrowing power questions
Why do calculators give a different answer than my bank?
Every lender has its own serviceability formula — different income shading on bonuses, different treatment of HEM, different rate buffers (most use the APRA 3% buffer; a few use less). This calculator gives an indicative range; an actual lender pre-approval could land 10–25% either side.
What is HEM and why does it matter?
HEM stands for Household Expenditure Measure — a benchmark of "modest but sensible" living costs published by the Melbourne Institute. Lenders use it as a floor: if you declare expenses below HEM for your household type, they use HEM instead. This calculator does the same to avoid an optimistic estimate.
Does this account for HECS/HELP debt?
Not directly. HECS reduces your take-home pay (and so reduces your borrowing power) — most lenders treat it as a monthly commitment. If you have HECS, drop your gross income input by roughly $4–$15k depending on the amount you earn, or include the monthly HECS repayment as an existing debt.
Do investors borrow more or less than owner-occupiers?
Often more, because the lender adds rental income (usually shaded 70–80%) to your income side. But interest rates on investment loans are higher, the rate buffer is the same, and some lenders cap your investment LVR. I can model both scenarios for you.
How do I increase my borrowing power?
Reduce or close credit card limits (lenders assess the limit, not the balance), pay down personal loans and BNPL accounts, document side income properly, and pick the right lender — some are 20% more generous than others on the same numbers. That last one is where a broker earns their keep.
I have a partner. How does joint borrowing work?
Add both gross incomes to the income input and both dependents in the dependants field. Joint borrowing is usually higher than two single applications, because the HEM expense floor is roughly the same across two adults as one (not double).
Stephanie Newman Australian Credit Representative number 388799 and Coastal Home Lending Pty Ltd Australian Corporate Credit Representative number 578712 are licenced Credit Representatives of Australian Finance Group Ltd Licence number 389087. ACN 066385822. This is general information only. Please seek personal financial advice tailored to your circumstances.
Borrowing power estimates are indicative only — actual borrowing capacity varies materially by lender and depends on credit history, asset position, and the loan structure.