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See how much you could borrow with APRA's 3% buffer applied — and which constraint (serviceability, LVR, or DTI) sets your ceiling.
This is an estimate — not a pre-approval
Your actual borrowing capacity will vary between lenders and depends on your complete financial situation. Consult a licensed mortgage broker for an accurate assessment.
Enter your income, household details, deposit, and any existing debts to see how much you could borrow — and which constraint sets the ceiling.
Estimate how much you could borrow for a property purchase based on your income, expenses, existing debts, and deposit. This calculator uses a simplified serviceability assessment with APRA's 3% buffer rate to provide a ballpark estimate of your borrowing capacity.
Enter your gross annual income
Add your before-tax annual salary plus any reliable additional income (bonuses, second job, rental income). For joint applications, combine both incomes.
Enter your monthly living expenses
Total your typical monthly spending excluding rent or current mortgage repayments. Include groceries, utilities, transport, entertainment, insurance, and discretionary spending.
Add existing debts and credit limits
Include monthly repayments on any car loans, personal loans, or HECS-HELP debt, plus the total credit limit on all your credit cards (lenders count the limit, not the balance).
Enter your deposit amount
Enter how much you have saved, including any First Home Owner Grant or family contribution. Higher deposits reduce your loan-to-value ratio and may affect how much you can borrow.
Review the estimated borrowing capacity
See your estimated maximum borrowing amount with APRA's 3% serviceability buffer applied. Use this as a rough guide — speak to a mortgage broker or lender for a formal pre-approval.
HEM (Household Expenditure Measure) is a benchmark of typical household living costs that lenders use as a minimum baseline for assessing your expenses. Even if you spend less than HEM, lenders will generally assume your living costs are at least the HEM figure for your household size and income. This calculator uses a simplified HEM-style baseline.
Lenders use different serviceability formulas, expense benchmarks, debt-to-income limits, and treatment of bonus or rental income. Some are stricter on credit cards, HECS-HELP debt, or living expenses than others. That's why two lenders can give wildly different borrowing power estimates for the same applicant — and why mortgage brokers can be useful for comparing options.
Lenders subtract your declared living expenses (or HEM, whichever is higher) from your net income to calculate the surplus available for loan repayments. Higher expenses reduce your borrowing power. Be honest — lenders verify recent transaction history, and overstating affordability can lead to mortgage stress.
If you're applying for a joint loan, both incomes are included in the assessment. The calculator lets you enter combined income and combined expenses to estimate joint borrowing capacity. Joint applications often unlock significantly more borrowing power than individual ones.
Since 2021, APRA has required all Australian lenders to assess loan repayments at the loan rate plus a 3% serviceability buffer. This protects against future rate rises. So if your loan rate is 6%, lenders calculate your repayments at 9% — meaning you can borrow less than the actual rate alone would suggest.