Home loan pre-approval calculator

Before you start looking for your perfect home, find out if you qualify for the necessary funds with a home loan pre-approval calculator.

Getting pre-approval for a home loan is one of the first big steps to owning your very own home. Pre-approval can give you far more bidding power and confidence when making an offer. As all banks and lenders have their own specific eligibility requirements for pre-approval, an easy-to-use calculator for these purposes currently doesn’t exist.

It is possible, however, to determine your overall chances for a home loan by using the widely available information and by measuring it against your own circumstances. This can help you to make an educated guess about your chances for pre-approval and some other conditions of your loan. One calculator you might find useful is a borrowing power calculator. This will give you an estimate of the amount you could borrow given your income and other information and give you an idea about whether or not you’d be able to get pre-approval for a loan.

Why is it important to determine your home loan eligibility?


Before you apply for a home loan, it’s a good idea to be already confident that you will be approved. Having multiple home loan applications on your credit file within the same time period can reflect poorly on you and make it more difficult for you to be approved in the future.

In any case, pre-approval will also give you the confidence to make an offer on a property knowing that your financial situation has been reviewed and an independent party thinks you can afford this home, too. If you don’t qualify for pre-approval, take it as an opportunity to review your borrowing amount or other conditions which may have affected your application.

What home loan can you afford?

While it might not come as a surprise that the cost of buying property is well up there with the most expensive things a person will do during their lifetime, the extra costs that pop up at purchase time can be surprising. Government taxes and bank fees can hit hard and make the initial upfront cash you need to provide grow into a much bigger amount.

One of the first things most people decide about their home loan is whether to go with a fixed or variable interest rate. A variable interest rate home loan can let you take advantage of favourable market conditions as variable interest rates will fluctuate with the rates the Reserve Bank sets. However, if the interest rates go up you can expect you pay more per month.

With a fixed rate loan, you will always know exactly how much your monthly repayments will be, which can make it easier to plan your budget.

You need to consider the rates as well as the other features of a home loan to determine whether the product will be suitable for your borrowing needs.

Lenders’ Mortgage Insurance (LMI) may be applicable if you cannot provide a certain percentage of the total cost of your home upfront (usually about 20%). The cost of this insurance can run into the thousands and should not be forgotten. One way to avoid it might be to ask a family member to act as guarantor. Some lenders also allow you to incorporate LMI into your home loan, although this will increase your repayments and interest as it is considered part of your principal.

Stamp duty is another upfront fee you’ll have to pay. The amount you pay increases with the price of the property you are buying and varying from state to state.

Once you have counted in all of the extra fees and charges and the deposit, calculate the cost of your monthly repayments. It will be this amount that will determine your ongoing ability to keep up with your home loan.

Your ability to afford a home loan and be approved for one is very much indicated by your pre-approval status. Calculate your total household income and all of your expenses and shop around to find a home loan that suits you.

Compare home loans from across the market

Rates last updated September 20th, 2018
Loan purpose
Offset account
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Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
$0 p.a.
Get a very low interest rate and pay fewer fees. Enjoy a fast online application process and add a 100% offset account for $10 a month.
$0 p.a.
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
$0 p.a.
Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online. Available with just a 10% deposit.
$0 p.a.
A simple mortgage with a competitive interest rate and no application or monthly fees. Borrow up to $2 million from a convenient online lender.
$0 p.a.
Competitive interest rate and low fees. Available with a 10% deposit. Partial offset account attached (offset up to $15,000).

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Marc Terrano

Marc Terrano is a Lead Publisher at finder. He's been writing and publishing personal finance content for over five years and loves to help Australians get a better deal.

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UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000

Take advantage of a low-fee mortgage with a special interest rate of just 3.59% p.a. and a 3.59% p.a. comparison rate.

loans.com.au Essentials - Variable (Owner Occupier, P&I)

A competitive interest rate home loan with interest only options. Interest rate 3.64% p.a.
comp rate of 3.66% p.a.

Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed LVR ≤90% ($150K+ Owner Occupier)

Loans over $150k get a discount off an already low fixed rate. Available for NSW, QLD and ACT residents only.

Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer ($150k+ Owner Occupier, P&I) Discount 1

New borrowers or refinancers can get a discounted rate with this package loan. Bonus $1,500 cashback for refinancers.

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One Response

  1. finder Customer Care
    JonathanAugust 3, 2017Staff

    Hi Angelo,

    Unfortunately pay slips are required to justify income claims to the bank. The payroll team at your employer should be able to create/ send you the payslips.

    Best regards,


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