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Borrowing capacity calculator

Get an estimate of how much you can borrow before you apply for a home loan.

Richard Whitten
Richard Whitten

Updated . What changed?

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We’re committed to our readers and editorial independence. We don’t compare all products in the market and may receive compensation when we refer you to our partners, but this does not influence our opinions or reviews. Learn more about Finder.

Finder's borrowing capacity calculator can give you a quick estimate of how much you can borrow for your home loan. Just enter a few details about your income, debts and expenses, plus information about your home loan.

You probably don't have a home loan yet, so just put in a hypothetical interest rate and loan amount based on your own borrowing situation. If you need a clearer idea of current home loan interest rates then check out the rates in the table below the calculator.

Use the calculator
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How to use the calculator

To use this calculator you can input a loan term (30 years is the most common choice), your income and select single or joint application depending on whether you are applying as a couple or not. You can input your spending in the expenses fields (just use the other loans field).

Please note that this calculator provides very rough estimates and Finder is not a mortgage lender. It's a good idea to use multiple borrowing power calculators to get a better understanding of what you might be able to borrow. And if you need more help you can also talk to a professional mortgage broker.

Check out some up-to-date home loan rates

Data indicated here is updated regularly
$
Loan purpose
Offset account
Loan type
Repayment type
Your filter criteria do not match any product
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
UBank UHomeLoan Variable Rate - Discount Offer for Owner Occupiers, Variable P&I Rate
UBank UHomeLoan Variable Rate - Discount Offer for Owner Occupiers, Variable P&I Rate
2.49%
2.49%
$0
$0 p.a.
80%
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
Go to site More info
St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)
St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)
2.54%
2.56%
$0
$0 p.a.
80%
Up to $4,000 refinance cashback. A competitive variable rate loan from St.George. Refinancers borrowing $250,000 or more can get $4,000 cashback (Other terms, conditions and exclusions apply).
Go to site More info
Athena Celebrate Home Loan - 60% LVR Owner Occupier, P&I
Athena Celebrate Home Loan - 60% LVR Owner Occupier, P&I
2.34%
2.34%
$0
$0 p.a.
60%
Owner occupiers with 40% deposits or equity can get this competitive variable rate loan. No upfront or ongoing fees.
Go to site More info
Westpac Flexi First Option Home Loan - Basic Variable Rate (Owner Occupier, P&I)
Westpac Flexi First Option Home Loan - Basic Variable Rate (Owner Occupier, P&I)
2.29%
2.72%
$0
$8 monthly ($96 p.a.)
95%
Up to $3,000 refinance cashback.
A flexible and competitive variable rate loan. Eligible borrowers refinancing $250,000 or more can get $2,000 cashback per property plus a bonus $1,000 for their first application. Other conditions apply.
Go to site More info
homeloans.com.au Low Rate Home Loan with Offset - LVR Under 60% (Owner Occupier, P&I)
homeloans.com.au Low Rate Home Loan with Offset - LVR Under 60% (Owner Occupier, P&I)
2.29%
2.31%
$0
$0 p.a.
60%
A competitive rate with no application or ongoing fee. This loan is not available for construction.
Go to site More info
HSBC Home Value Loan - Promotional Offer (Owner Occupier P&I)
HSBC Home Value Loan - Promotional Offer (Owner Occupier P&I)
2.59%
2.60%
$0
$0 p.a.
80%
Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online.
Go to site More info
Yard Variable Home Loan - LVR 80% Special (Owner Occupier, P&I)
Yard Variable Home Loan - LVR 80% Special (Owner Occupier, P&I)
2.39%
2.42%
$0
$0 p.a.
80%
A very low variable rate loan for home buyers with an optional offset account ($10 monthly fee). 20% deposit required.
Go to site More info
Virgin Money Reward Me Variable Home Loan - LVR ≤ 60% (<$500k Owner Occupier, P&I)
Virgin Money Reward Me Variable Home Loan - LVR ≤ 60% (<$500k Owner Occupier, P&I)
2.64%
2.81%
$300
$10 monthly ($120 p.a.)
60%
$3,000 refinance cashback.
A variable rate loan for owner occupiers with a 40% deposit (or equity) borrowing under $500,000. Get a $3,000 cashback when you switch to Virgin Money with a loan amount of $300,000 or more with an LVR up to 80%. You must apply by 29 November 2020 and settle by 28 February 2021.
Enquire now More info
Athena Liberate Home Loan - 70% to 80% LVR Owner Occupier, P&I
Athena Liberate Home Loan - 70% to 80% LVR Owner Occupier, P&I
2.44%
2.38%
$0
$0 p.a.
80%
A competitive variable rate mortgage for owner occupiers $0 application and $0 ongoing fees. This interest rate falls over time as you pay off the loan.
Go to site More info
St.George Basic Home Loan - LVR above 80% (Owner Occupier, P&I)
St.George Basic Home Loan - LVR above 80% (Owner Occupier, P&I)
2.59%
2.61%
$0
$0 p.a.
90%
Competitive variable rate home loan that is available with a 10% deposit. Refinancers borrowing $250,000 or more can get cashbacks between $2,000 and $4,000 depending on their loan to value ratio (Other terms, conditions and exclusions apply
Go to site More info
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Applications are subject to approval. Conditions, fees and charges apply. Please note that you need to be an Australian citizen or permanent resident to apply.

Credit services for Aussie Select, Aussie Activate and Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 (“Aussie”) and its appointed credit representatives, Australian Credit Licence 246786. Credit for Aussie Select products is provided by Residential Mortgage Group Pty Ltd ACN 152 378 133, Australian Credit Licence 414133 (“RMG”). RMG is a wholly-owned subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian Credit Licence 234945. Credit for Aussie Activate products is provided by Pepper Finance Corporation Limited ACN 094 317 647 (“Pepper”). Pepper Group Limited ACN 094 317 665, Australian Credit Licence 286655 acts on behalf of Pepper. Credit services for Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 Australian Credit Licence 246786 (“Aussie”) and its appointed credit representatives. Aussie is a trade mark of AHL Investments Pty Ltd ABN 27 105 265 861. Credit and any applicable offset accounts for Aussie Elevate are issued by Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL / Australian Credit Licence 237879.

Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. ©2020 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786.

By submitting this form, you agree to the Aussie privacy policy.

After entering your details a mortgage broker from Aussie will call you. They will discuss your situation and help you find a suitable loan.

  • A comparison of home loans from multiple lenders.
  • Expert guidance through the entire application process.
  • Free suburb and property reports.
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How to use the borrowing capacity calculator

Finder's borrowing power calculator is very easy to use. Just enter the following details, and if you're not sure just put in an estimate:

  • Term. This is the length of the home loan. Most people pick between 25 and 30 years (choose 30 if you're not sure about this for now).
  • Interest rate. The home loan interest rate determines your repayment costs. If you're not sure, pick a rate from the loans table on this page.
  • Application type. Pick single application if you're on your own and joint if you're applying as a couple.
  • Income. The calculator asks for gross income, meaning how much you earn before tax and other expenses.
  • Expenses. Put in an estimate of your monthly debt payments. There's no expenses field but you can put an estimate of your monthly spending in the "other loans" field.
  • Dependents. If you have any children under the age of 18 put the number of children in this field.

The results

The result includes an estimate of how much a lender may be willing to lend you, plus a breakdown of what that looks like as monthly repayments. And then it gives you the total interest you will end up paying on top of the loan amount itself.

How much can I borrow and how big should my deposit be?

Your deposit size is an important factor in determining your actual borrowing power, depending on how a lender calculates borrowing capacity.

Having a larger deposit relative to the amount you can borrow helps your chances of getting a loan approved. However, many lenders will approve your loan if you have just a 5% deposit saved.

But if you can save up to 20% you will be in a better position to borrow money. Borrowers with low deposit home loans (under 20%) usually have to pay lenders mortgage insurance, which can add thousands to their borrowing costs.

Learn how to figure out your deposit size

Remember that you also need to account for other costs when purchasing a home, which can include:

Can I boost my borrowing capacity?

You should never try to borrow more than you can comfortably afford to repay. But every lender has their own idea of how much money they can lend you. So taking some simple steps to increase your borrowing capacity is not a bad idea.

Here are some quick tips:

  • Save a bigger deposit. The more you have saved the stronger your position. A good savings history will also tell a potential lender that you're likely to be able to keep up with regular repayments. If you're a first home buyer you may be entitled to the First Home Owners Grant (FHOG) which can form part of your deposit.
  • Sort out your debts before applying. Debts count against your borrowing power, especially high-interest debts. You don't need to instantly pay off all your debts (you don't want to deplete your deposit savings) but making regular repayments to reduce them is essential.
  • Cut back on your spending. A few months of careful spending will make you a stronger applicant. Draw up a budget and examine areas where you can cut back.
  • Talk to multiple lenders. Every lender will give you a different borrowing power estimate and it's wise to look at multiple options (don't apply, just enquire).

Read our full guide on how to increase your borrowing capacity

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I've got a good sense of my borrowing power - what's my next step?

Once you have a clear idea of your borrowing capacity it's time to look at your deposit, start searching for properties and research your home loan options.

The home buying process is unique for every buyer. The steps below can guide you but you don't have to follow them in any strict order. For example, you may already have decided on your lender or saved your deposit.

  • Work out your budget. With a clear idea of your borrowing power you can determine a realistic borrowing amount for you (even if a lender says they'll lend you $900,000 you may not be prepared to spend anywhere near that much). Think about how big your deposit can realistically be and factor in other costs like stamp duty.
  • Your deposit. Building a deposit is the key to getting a loan. You can get a home loan with a low deposit (at least a 5% deposit), though 20% is better. Your deposit, along with your borrowing power, ultimately determine your loan size.
  • Property search. With your price range and deposit in mind you can start looking for properties with a more accurate sense of what's realistic for you. Narrow down your suburbs and the type of property you're looking for. Go online to see listings, track sales in a property search app and start going to open inspections to see places for yourself.
  • Compare mortgages. You always want a loan with a low interest rate. And you need to decide whether you're looking for a fixed rate or a variable rate loan. It's worth looking at several lenders before applying with one (some lenders may be reluctant to lend in certain postcodes if you're buying a unit, for example).

If you need more help getting a home loan you can also have a free chat with a professional mortgage broker.

More questions

Do lenders publish their borrowing capacity calculation methods?

Every lender calculates things like your expenses differently, although they often use the same basic method. This means every lender gives you a different borrowing amount when you use their calculators.

Unfortunately banks keep their lending criteria a secret from borrowers. This means that while some borrowers can qualify for a loan, other borrowers might not qualify, even though they might look as promising as the other candidate.

Will my credit score affect my borrowing power?

One factor that isn't captured in a borrowing capacity calculator is your credit score. But when it comes to the application then your lender will look at this too. That's why it's a good idea to check your credit score before you apply.

What do I need in order to actually apply for a home loan?

Once you reach the home loan application stage you will need to gather some information about yourself, your finances and the property you are buying. You can check out our detailed guide on preparing home loan application documents, but in general you will need:

  • ID documents
  • Recent bank statements or other proof of income
  • The address of the property you're buying
  • Information about your assets and debts

More guides on Finder

Home Loan Offers

Important Information*
Logo for Westpac Flexi First Option Home Loan - Basic Variable Rate (Owner Occupier, P&I)
Westpac Flexi First Option Home Loan - Basic Variable Rate (Owner Occupier, P&I)

Up to $3,000 refinance cashback. A flexible and competitive variable rate loan. Eligible borrowers refinancing $250,000 or more can get $2,000 cashback per property plus a bonus $1,000 for their first application. Other conditions apply.

More info
Logo for St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)
St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)

Up to $4,000 refinance cashback. A competitive variable rate loan from St.George. Refinancers borrowing $250,000 or more can get $4,000 cashback (Other terms, conditions and exclusions apply).

More info
Logo for Athena Liberate Home Loan - 70% to 80% LVR Owner Occupier, P&I
Athena Liberate Home Loan - 70% to 80% LVR Owner Occupier, P&I

A competitive variable rate mortgage for owner occupiers $0 application and $0 ongoing fees. This interest rate falls over time as you pay off the loan.

More info
Logo for UBank UHomeLoan Variable Rate - Discount Offer for Owner Occupiers, Variable P&I Rate
UBank UHomeLoan Variable Rate - Discount Offer for Owner Occupiers, Variable P&I Rate

Take advantage of a low-fee mortgage with a special interest rate of just 2.49% p.a. and a 2.49% p.a. comparison rate.

More info

Ask an Expert

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42 Responses

  1. Default Gravatar
    YogaeshMarch 11, 2019

    Hello, I had a quick question on how to use this calculator. Can you please clarify what should be included in “other loans” under expenses? I currently do not have any other loans, but obviously, I have monthly expenses on food, groceries, utilities, etc. Should those be included under other loans? Please advise.

    Reply
    • Avatarfinder Customer Care
      JoshuaMarch 11, 2019Staff

      Hi Yogaesh,

      Thanks for getting in touch with Finder. It’s nice to know that you’re interested in using our free calculator.

      Regarding your question, your monthly expenses such as food, groceries, and utilities are not part of the “Other loans.” “Other loans” refer to other loans that you may have such as home loans, car loans, and personal loans.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

      Reply
  2. Default Gravatar
    JenniferAugust 3, 2018

    Hi im on centrelink and i want to buy a house , how much deposit do i need and how much can i borrow and which bank can offer me a home loan?

    Reply
    • Default Gravatar
      NikkiAugust 3, 2018

      Hi Jennifer,

      Thanks for reaching out.

      You can definitely apply for a home loan while receiving Centrelink.

      You can check this page on HOME LOANS for Centrelink recipients. You can find information on how a mortgage works for Centrelink payments, benefits and risks, and a quick guide on how to apply for one. You can also utilize the box provided where you can enter your information to help the loans expert assess the loan that will work for you.

      Hope this was helpful. Feel free to message us should you have further questions.

      Cheers,
      Nikki

      Reply
  3. Default Gravatar
    FrancescoApril 9, 2018

    Hi I was looking at getting a personal loan with my credit score which would be the best bank to go through

    Reply
    • Default Gravatar
      NikkiApril 9, 2018

      Hi Francesco,

      Thanks for your message and for visiting finder – the leading comparison website & general information service built to give you advice in your buying decision needs. How are you doing today?

      There are different types of personal loans you can choose from and you can see it on this page.
      Different personal loans will require different documents to apply. Generally, these are the kind of documents that they will want to see:

      Personal details. You will need to provide your name, contact information and proof of your identity using a drivers license, passport, etc.
      Employment information. This includes where you work, what your income is, and the name and contact information of your employer.
      Details of your assets. This includes any properties or vehicles you own as well as any savings you have accumulated.
      Details of your liabilities. Liabilities refer to any open credit accounts, active credit and store cards and any debts you have owing on your mortgage or other loans.

      Turnaround time will be vary depending on the loan you’re applying for and for which lender you’re borrowing money from. Traditionally, an approval can take a few days up to a week, if you apply online, the process can be faster.

      Make sure the check all the eligibility criteria needed to apply for a personal loan to ensure of a 100% approval.

      Hope this helps! Feel free to message us anytime should you have further questions.Happy hunting!

      Cheers,
      Nikki

      Reply
  4. Default Gravatar
    choOctober 6, 2017

    I want to borrow $260,000 to buy a house. I am an existing home owner who will be using equity.

    Reply
  5. Default Gravatar
    DeniceMarch 22, 2017

    I have ignorantly applied for lots of credit cards which offer enticements like frequent flyer bonus points not realising that this has affected my once excellent credit rating.how can i restore it.? I did not know by doing what i did was to be detrimental as have never not fulfilled my payment obligations nor been behind or bankrupt etc..it seems so unfair.please help!!

    Reply
    • Avatarfinder Customer Care
      MayMarch 22, 2017Staff

      Hi Denice,

      Thanks for getting in touch.

      I’m sorry to hear about the enquiries on your file. Unfortunately, several enquiries on your file made by a credit provider can negatively impact your credit rating and that will stay on your credit file for five years. Basically, the only details or enquiries that can be removed from your credit file are those that are incorrect or erroneous.

      On this page, you can find a step by step guide on how you can possibly remove those enquiries that you think are incorrect.

      Hope this helps.

      Cheers,
      May

      Reply
  6. Default Gravatar
    mymboFebruary 17, 2017

    lets assume that my gross income is $450 usd and i want to borrow some money or get a loan of which i have a minimum of 3 dependents how much do you advise me to borrow ?

    Reply
    • Avatarfinder Customer Care
      DeeFebruary 22, 2017Staff

      Hi Mymbo,

      Thanks for your question.

      Please note that the borrowing calculator above is applicable to Australian residents.

      Moreover, we can’t give an estimate as to how much you should or you could borrow because the lenders normally decide how much to lend based on a number of factors and not just your gross income.

      You may check and compare personal loans on this page. When you click the ‘go to site’ button, you’ll be redirected to the lender’s website where you can request for a quote.

      Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision and consider whether the product is right for you.

      Cheers,
      Anndy

      Reply
  7. Default Gravatar
    adeleJanuary 19, 2017

    If my limit on my loan is 110k, redraw amount 60k and balance 50k. repayments based on 110k. can i use redraw to pay balance of 50k

    Reply
    • Avatarfinder Customer Care
      MayJanuary 19, 2017Staff

      Hi Adele,

      Thanks for your question.

      Usually, you are allowed to access your redraw facility in the case of an emergency. I would suggest that you contact your lender if they would allow you to use the funds on your redraw for paying off your $50,000 loan balance.

      Cheers,
      May

      Reply
  8. Default Gravatar
    NevilleSeptember 19, 2016

    Does my age play a part in my borrowing ability im 53

    Reply
    • Avatarfinder Customer Care
      MaySeptember 21, 2016Staff

      Hi Nev46,

      Thank you for your question. You’ve reached finder.com.au we are a financial comparison website and general information service we are not mortgage specialists so can only offer general advice.

      In Australia, lenders are not actually allowed to discriminate borrowers based on age. Australia’s anti-discrimination legislation, i.e. Age Discrimination Act 2004 and National Consumer Credit Protection Act 2009, prevents lenders from discriminating against mortgage applicants due to their age.

      However, lenders would also like to make sure that you meet the general lending criteria, that is you can comfortably afford to repay the loan without having financial difficulties. So, the older you are, the more it might be difficult for you get a mortgage approval. Usually, lenders would limit the age requirements from 65 to 75 years.

      Cheers,
      May

      Reply
  9. Default Gravatar
    shainaSeptember 13, 2016

    a has 1000000 savings deposit with the phil. national bank. One day a borrowed 200000 from the bank. without asking permission from a, the bank subtracted the 200000 from a’s account , leaving a balance of 800000 in a’s favor. Is the bank’s action proper?

    Reply
    • Avatarfinder Customer Care
      DeeSeptember 14, 2016Staff

      Hi Shaina,

      Thanks for your question.

      Please note that we are an Australian financial comparison and information website. As such, we can’t provide specific advice for your situation.

      If the terms and conditions of the loan clearly state that the bank can deduct the balance of the loan from their client’s existing account, then the bank’s action is acceptable. It would be best if the person concerned will directly get in touch with the bank and confirm this.

      Cheers,
      Anndy

      Reply
  10. Default Gravatar
    FrancoNovember 13, 2015

    Very useful! With this calculator, I can do the entire math in just some minutes. Brilliant!

    Reply
    • Avatarfinder Customer Care
      MarcNovember 13, 2015Staff

      I’m glad you found it useful Franco! We’ve got many more calculators here if you’re interested.

      Reply
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