Home Loan Eligibility Calculator

Calculate the amount you can borrow and how much your loan repayments will be, without having to step inside a bank or applying for a loan.

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Use the calculator below to input details about your income, expenses, outstanding debt and the interest rate of the mortgage you’re interested in, and you can calculate exactly how much you would be able to borrow and what your monthly or fortnightly repayments would be. The results will vary depending on the loan term you choose (usually 30 years) and although your exact loan repayment may differ depending on the lender you end up applying with, this is a great indication of how much you will need to budget for home loan repayments.

Ready to compare today's home loan rates? Look at the table below

Name Product Interest Rate (p.a.) Comp. Rate (p.a.) Fees Monthly Payment

UBank UHomeLoan Fixed P&IHome 1Y Fixed≥ 20% Deposit

UBank UHomeLoan Fixed
  • App: $0
  • Ongoing: $0 p.a.
Fix your mortgage for 1 year with a very competitive rate and no ongoing fees.

loans.com.au Smart Booster Discount Variable Home Loan P&IHome≥ 20% Deposit

loans.com.au Smart Booster Discount Variable Home Loan
  • App: $0
  • Ongoing: $0 p.a.
Get a low discounted variable rate loan. Requires a 20% deposit. Get your loan processed fast and settle within 30 days.

Athena Variable Home Loan P&IHome≥ 40% Deposit

Athena Variable Home  Loan
  • App: $0
  • Ongoing: $0 p.a.
Owner occupiers with 40% deposits or equity can get this competitive variable rate loan. No upfront or ongoing fees.

Nano Variable Home Loans P&IHome≥ 25% Deposit Refi Only

Nano Variable Home Loans
  • App: $0
  • Ongoing: $0 p.a.
Switch to this competitive variable rate with zero fees. Requires a 25% deposit.

HSBC Fixed Rate Home Loan Package P&IHome 2Y Fixed≥ 20% Deposit

HSBC Fixed Rate Home Loan Package
  • App: $0
  • Ongoing: $390 p.a.
$3,288 refinance cashback offer
Lock in a low fixed rate for 2 years and buy your home with a 20% deposit. Eligible refinancers borrowing $250,000 or more can get a $3,288 cashback. Terms and conditions apply.

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What are the eligibility requirements for most home loans?

Here are some criteria that most lenders look at when approving mortgage applications:

  • Deposit amount. The larger your home loan deposit, the less risk a lender takes on by lending to you. As such, you can improve your eligibility for a home loan by saving for a larger deposit. This could attest to your ability to save regardless of the expenses you currently have.
  • Credit history. Your credit history provides information regarding how well you repay your debts. A good credit score may enable you to borrow a higher amount because it would demonstrate that you are a reliable borrower. Loan processors also check your credit history to see if you have applied for bankruptcy in the past or have had foreclosures.
  • Income. Your current income will also be a determinant of what you can borrow. A higher income might suggest that you are better able to make repayments on your home loan.
  • Financial stability. Lenders also consider your ability to pay the mortgage should you lose your source of income or should your income reduce. If you are self-employed or earn your primary income from investments, you may be seen as a higher risk to a lender.
  • Debts. Debts reduce your current income and savings, affecting your ability to repay your mortgage. Loan processors will usually calculate how much debt you have so that they can determine whether you will still have enough income to make monthly payments.
  • Age. Your age is also a factor that is used by lenders to determine your eligibility. Young people may have less debts and their income may increase in the future depending on their occupation, so they might be a better bet for banks.
  • Value of your home. You can use the equity on your current home loan to refinance your mortgage.

Why is it important to use a borrowing power calculator?

A borrowing power calculator gives you estimates of your borrowing limit depending on interest rates and your current income. Although the final decision of how much you can borrow lies with your lending bank, the calculator can be a great starting point to help you organise your finances in preparation for increasing the amount you are eligible for.

The borrowing calculator on finder.com.au makes the work of comparing mortgages from different lenders a lot easier. By simply inputting information such as your income, expenses and the amount you wish to borrow, you can easily calculate what you are eligible for and find a lender who can provide the financing you want at a rate and repayment plan that suits you. This calculator also enables you to calculate the loan term that works the best with your budget and your goals.

A longer loan term would reduce your monthly instalments but increase the amount you have to pay in interest charges, while a shorter loan term would mean that you save on interest payments but would have to commit to higher monthly payments. With the help of the borrowing power calculator, you can work out what repayment plan would suit your income and current debt liabilities so that you can come up with a mortgage proposal that stands a good chance of being approved.

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How to use the borrowing power calculator

Using a borrowing power calculator is very simple. Here are the different fields you need to fill out on the calculator:

  • Details of your income. This section requires you to enter accurate details of all sources of your income, including salaries, commissions and monthly bonuses. Your income is what ultimately determines what you can borrow as it’s where money for the monthly repayments of your mortgage will come from. If you are servicing the mortgage with a partner or spouse, you will need to enter details of your joint or household income, which can increase the amount you can borrow.
  • Expense details. In order to calculate how much you can borrow on a home loan, the borrowing power calculator needs full details of your liabilities, debts and monthly expenses. If you have an outstanding car loan or personal loan, you need to include this in this field because it can affect your ability to pay the mortgage you need. Credit card debt is also entered in this section along with all your total annual expenses. It’s important to repay most of your expensive credit card debt before applying for a mortgage, as this debt could have a bearing on whether or not you get approved for a home loan.
  • Loan details. Each loan you look at will have different features. The calculator works out the amount you can borrow from a certain loan by using its interest rate on mortgages and the loan term you choose. Enter the interest rate and use different variables on the loan term field to see how this affects the overall amount you are able to borrow. Most mortgage providers allow you to repay your home loan over 30 years so that you can reduce your monthly repayments.

While it’s impossible to be able to use a calculator to see if you’re eligible for a home loan, it’s important to use tools such as a borrowing power calculator to see if your income, debts and liabilities would enable you to pay off a home loan. If you also take into account the eligibility criteria offered by most banks, you could have a fairly good idea of whether or not you’ll be approved for a certain loan.

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11 Responses

    Default Gravatar
    victorMarch 3, 2019

    I am a NZ citizen moving to Melbourne and my first job is of 50,000 AUD per annum and I already bought land of approx 360,000 without any loan with my savings.

    Now my question is considering my current situation where I am living with my family friends in Werribee with max day to day expenses of 150 per week including food, travel, phone, shopping etc.
    I would like to know if I can borrow approx. 300,000 to construct my first home???
    House will be worth AUD 750,000 upon completion.

      Avatarfinder Customer Care
      JohnMarch 4, 2019Staff

      Hi Victor,

      Thank you for reaching out to Finder.

      There may be a couple of things that the bank may be asking of you regarding your residency status if you are planning to permanently relocate to Australia. You may want to check our articles on first home buyer questions and home loans for temporary residents that may be helpful in answering some of your questions. You may also speak to a mortgage broker to know your options in taking out a home loan. Hope these help!


    Default Gravatar
    AdityaOctober 21, 2017

    Hello. I am a permanent resident working on fulltime role from last 6 months with one of australia big IT company. Do i need to wait for 2 years to become eligible for home loan?

      Avatarfinder Customer Care
      JoanneOctober 21, 2017Staff

      Hi Aditya,

      Thanks for reaching out to Finder.

      Being an Australian citizen or permanent resident is one of the lending criteria in general. It does not specifically say that you have to wait for a certain number of years to become eligible for a loan. You may read more about the general lending criteria for home loans.

      For you to start comparing home loan rates you may view the table above and you may also use our loan eligibility criteria on this same page that way you can get an estimate of your borrowing limit. Once you have chosen a particular lender, you may then click on the “Go to site” button and you will be redirected to the lender’s website where you can proceed with your loan application or get in touch with their representatives for further assistance.

      Lastly you may want to speak with a mortgage broker so that you may discuss your options.


    Default Gravatar
    SonyaMarch 19, 2016


    I’ve just gone back to work last wek after having a child and have not worked for 3.5years. My partner works part time and is here on a partner visa. He has continuously worked for the last 2 years he has been here. Would we still be eligible for a loan. And how long should i be employed before i go and enquire about a loan. Thanks

      Default Gravatar
      BelindaMarch 21, 2016

      Hi Sonya,

      Thanks for getting in touch.

      For a joint application, most lenders prefer that you have both been in the same job for a continuous period of 12 months (or the same industry for at least 2 years) as this demonstrates that you have a reliable and consistent income source.

      However, please keep in mind that each lender will have a different policy with regard to your employment situation, and your ability to qualify for a home loan will depend on a range of criteria including your income, assets, credit history as well as any debts that you have (e.g. personal loans or credit cards).

      You can read our article about how to refinance (or get a home loan) once you have started a new job, which provides tips about how you can improve your chance of being approved.

      I also recommend getting in touch with a licensed mortgage broker. A broker can help you understand your financial position and they can leverage their panel of networks to find a lender that’s more inclined to review your application.

      I hope this helps.

      All the best,

    Default Gravatar
    KayeNovember 15, 2015

    Hi, i am a nz citizen living in australia. Do i meet the criteria to take out a home loan?

      Avatarfinder Customer Care
      MarcNovember 16, 2015Staff

      Hi Kaye,

      Thanks for the question.

      Generally speaking, there are lenders who offer loans to Kiwis living in Australia, but these can come with extra restrictions and requirements depending on the lender, such as larger deposit requirements.

      You may wish to contact a mortgage broker to find out what your chances of approval are, or speak directly with a lender you’re interested in to find out what their policy is.

      I hope this helps,

    Default Gravatar
    RakeshMarch 6, 2015

    I arrived as a skilled migrant to South Australia 1 year back. Currently, I am employed on contract with one of the largest Australian companies. Am I eligible to apply for a home loan ?

      Avatarfinder Customer Care
      ShirleyMarch 6, 2015Staff

      Hi Rakesh,

      Thanks for your question.

      Yes, it is still possible to apply for a home loan with your current residency status. We recommend that you approach a bank with migrant services, such as the big four: Commonwealth Bank, Westpac, ANZ, and NAB.

      Our guide to home loans for non-residents page could also be helpful.

      I also recommend getting in touch with a licensed mortgage broker. A broker can help you understand your financial position and they can leverage their panel of networks to find a lender that’s more inclined to review your application.


      Default Gravatar
      RakeshMarch 6, 2015

      Thanks Shirley. I was not aware that they had such services for migrants. Will look into it right away.

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