Free Calculator: Mortgage & Finance Broking
Borrowing Power Calculator Australia
Get an indicative estimate of your home loan borrowing capacity based on your income, expenses, and deposit. Built by JB Fremy using the same APRA-style serviceability framework lenders apply, including income shading, HEM expense floors, and credit card limit treatment. One of the few broker calculators that shows its methodology. Results appear on-page, no email required.
Enter Your Details
Fill in your income, expenses, and deposit below. Your borrowing estimate will appear on-screen, no account or email address required.
Borrowing Power Calculator Form
Your indicative borrowing estimate
Indicative only. Subject to lender assessment and credit approval.
General information only. This estimate does not constitute a credit approval, pre-approval, or offer of credit. It does not take into account your objectives, financial situation, or needs. All applications are subject to lender assessment and credit approval.
About this estimate
Fees, charges, lender policy settings, and individual assessment methodology may affect final outcomes.
Get a broker's view of your actual borrowing capacity
Our brokers run your figures through multiple lender calculators (Big Four banks, regional banks, non-banks, and specialist lenders) to find the highest approval and the best rate for your situation.
We respond within one business day. No obligation. No cost to you.
- Broker-reviewed against real lender criteria
- Access to Big Four, regional, non-bank & specialist lenders
- No obligation, cancel any time
- Credit Representative of an ACL holder (Purple Circle Financial Services Pty Ltd, ACL 486112) • FBAA & MFAA Member
JBF Solutions is remunerated by lenders via commission when a loan settles. This does not increase your cost. Full disclosure is provided in our Credit Guide.
Thank you, we'll be in touch.
Your enquiry has been received. A JBF Solutions broker will contact you within one business day to discuss your borrowing position.
In the meantime, book a strategy call if you'd prefer to speak sooner.
How this borrowing power calculator works
This calculator uses a transparent, indicative model designed to give you a reasonable starting point for your home loan conversations. It does not replicate any individual lender's credit policy, each lender applies their own methodology, and results will differ.
The model works as follows:
- Your gross annual income is shaded by employment type (e.g. casual income is reduced to 80%) to approximate lender treatment.
- Declared monthly expenses, existing loan repayments, and a conservative credit card liability (3% of total limits per month) are deducted from your income base.
- An APRA-style serviceability buffer of 3% is added above the interest rate you enter, consistent with the minimum required under APRA's guidance for regulated lenders.
- The remaining monthly surplus is used to estimate the maximum loan principal you could service over your chosen term.
- Your deposit and any existing equity are used to calculate an indicative LVR and flag whether LMI is likely to apply.
Assumptions are visible in the "About this estimate" section below your result. If your result appears low or high relative to expectations, speak with a Brisbane mortgage broker who can run your exact figures through multiple lender systems.
What affects borrowing capacity in Australia?
Australian lenders consider a wide range of factors when assessing how much you can borrow for a home loan. Understanding these factors helps you prepare a stronger application.
Factors that increase borrowing power
- Higher household income, particularly stable PAYG employment
- Larger deposit or usable equity in an existing property
- Lower monthly expenses and declared liabilities
- Reduced or closed credit card limits
- Longer loan term (up to 30 years)
- Strong savings history relative to the lender's HEM benchmark
Factors that reduce borrowing power
- High living expenses or lender's minimum expense benchmark (HEM)
- Existing loan commitments and credit card limits
- Casual, contract, or self-employed income (may be shaded or excluded)
- Number of financial dependants
- Interest-only repayments on existing loans
- Adverse credit history or recent defaults
What to prepare before speaking to a broker
A broker-reviewed assessment is far more accurate than an online calculator. To make the most of your first conversation, it helps to have the following ready:
- Recent payslips (last two) or last two years' tax returns if self-employed
- Last three months' bank statements
- Details of all existing loans, credit cards, and financial commitments
- Evidence of your deposit or equity position
- Government-issued photo ID
- Your preferred property type, suburb, or purchase budget (if known)
You don't need all of this to have an initial conversation. Your broker can work with what you have and advise on what lenders will require.
Brisbane scenario: how borrowing capacity can vary
Consider a couple purchasing their first home in Brisbane's inner north, targeting the $900,000–$1,100,000 market. Here is how a broker-reviewed assessment might differ from a basic online estimate.
| Factor | Online calculator only | Broker-reviewed assessment |
|---|---|---|
| Income assessed | $180,000 gross combined | $185,000 after allowable bonus inclusion |
| Living expenses benchmark | Self-declared: $4,200/month | Lender HEM: $4,800/month (Brisbane couple, no dependants) |
| Credit card treatment | Balance only: $0 (paid monthly) | Limit assessed: $25,000 → ~$750/month notional repayment |
| Indicative result | ~$850,000 | ~$780,000–$820,000 depending on lender |
This example is illustrative only. Figures are not based on actual lender data and will vary by individual circumstance, lender, and current credit policy. General information only.
Why a broker assessment can differ from an online calculator
Online calculators (including this one) use simplified, indicative models. A broker-reviewed assessment runs your actual figures through multiple lenders' own credit calculators, applying the specific policies each lender uses for:
- Expense benchmarks: Lenders use the Household Expenditure Measure (HEM) as a minimum. HEM floors vary by location, household size, and income level.
- Income treatment: Overtime, bonuses, rental income, and self-employment income are assessed differently across lenders.
- Assessment rates: APRA requires lenders to assess serviceability at a minimum buffer of 3% above the product rate, but individual lenders may apply higher floors.
- Credit card policies: Most lenders apply a monthly liability of 2.5–3.5% of your total credit card limits, regardless of current balance.
- Lender appetite: Different lenders have different risk profiles for LVR, property type, employment, and loan size.
A broker identifies the lender most likely to approve your application at the loan amount you need, and at the best available rate.
Frequently asked questions
Your borrowing capacity depends on your income, expenses, existing debts, deposit size, and the lender's own credit policy. Most lenders assess your ability to service a loan at a rate higher than the current rate, this is the serviceability buffer, set at a minimum of 3% above the product rate under APRA guidelines. Use this calculator for an indicative estimate, then speak with a broker for a lender-specific assessment tailored to your situation.
Common factors that reduce borrowing capacity include high living expenses, existing loan repayments, credit card limits (even if unused), number of dependants, irregular or non-standard income, interest-only repayments on existing debts, and a smaller deposit that results in a higher LVR. A broker can identify which factors are most material for your application.
Yes, significantly. Most lenders treat your total credit card limit as an ongoing liability, not just your current balance. For example, a $20,000 credit card limit is typically treated as if you're paying $500–$700 per month in repayments, regardless of whether you pay the balance in full each month. Reducing or closing unused credit cards before applying can meaningfully improve your borrowing capacity.
Online calculators (including this one) provide indicative estimates only. Each lender applies their own credit policy, assessment rate, expense benchmarks, and internal criteria. A broker-reviewed assessment uses actual lender calculators with your verified financials and gives a far more accurate picture. Treat this result as a useful starting point, not a lending decision.
Yes. Many lenders approve loans with a 5–10% deposit, though you will generally pay lender's mortgage insurance (LMI) on loans above 80% LVR. LMI can be a significant cost. Government schemes such as the First Home Guarantee may allow eligible buyers to purchase with as little as a 5% deposit and avoid LMI. Speak with a broker to assess eligibility, as income and property price caps apply.
No. This calculator provides a general indicative estimate only. Pre-approval (sometimes called conditional approval or approval in principle) is a formal process where a lender reviews your actual financial documents, verifies your income and expenses, and assesses your credit history. Pre-approval gives you significantly greater confidence when making offers on property. Your JBF Solutions broker can guide you through the pre-approval process with suitable lenders.
Ready to find out your real borrowing capacity?
An online calculator is a useful starting point. A broker-reviewed assessment is the next step. Our team works with a panel of Australian lenders to find the right fit for your situation, comparing borrowing capacity, rates, fees, and structure at no cost to you.
Every eligible home loan settled through JBF Solutions triggers a $200 donation to the Bulimba Community Centre, at no cost to you. Learn more →