Borrowing Power Calculator

It gives a reasonable starting estimate, not a lender decision. Each lender applies its own expense benchmarks, income shading and interest rate buffer, so two lenders can assess the same household thousands of dollars apart. Use the result to set a rough price range, then ask a broker to run your figures through the policies of the lenders that suit you before you bid or sign anything.

Lenders count the full limit of every credit card as a debt, whether or not you use it. They assume you could draw the whole limit and work out a notional monthly repayment on it, which comes off your available income. Closing or reducing cards you do not need before applying is one of the simplest ways to lift the amount a lender will consider.

Usually because the lender assesses your loan at a higher rate than the one you will actually pay. Lenders add a serviceability buffer to test whether you could still meet repayments if rates rose, and they may also use higher living expense benchmarks or count only part of variable income such as bonuses. A broker can show which lenders treat your income type more favourably.

It can change how your income is counted rather than how much you earn. Most lenders want two years of tax returns and use the lower or average year, while some will consider one year of figures or business activity statements. If your business had a quieter year, the choice of lender can matter as much as the numbers themselves.