Borrowing power calculator
Estimate how much a lender may let you borrow, based on your income, expenses and debts, tested at your interest rate plus the 3% APRA buffer.
Rates last checked . See how we calculate.
You may be able to borrow around
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Your expenses and commitments use up your income at the assessment rate. Try lowering debts or card limits.
- Repayment at your rate
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- Rate the lender tests you at
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- Living expenses used
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- Debt-to-income ratio
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We used a minimum living expense figure because the amount entered is below what lenders typically accept for your household.
This is 6 times income or more. APRA limits how much banks can lend at this level, so approval may be harder.
An estimate only. Each lender uses its own expense benchmarks and policies.
Quick answer: a single applicant earning $100,000 a year, with $2,500 a month in living costs and no other debts, could borrow around $470,000 at a 6.50% rate. That is because lenders test whether you could still afford repayments at 9.50%, your rate plus APRA's 3 percentage point buffer.
How lenders work out your borrowing power
Every lender has its own model, but they all follow the same basic steps. This calculator follows them too.
- Work out your take-home income. Gross salary less income tax and the Medicare levy, using 2026-27 tax rates. Lenders usually count around 80% of rental income to allow for vacancies and costs.
- Take off your living expenses. Lenders use the higher of the expenses you declare and a benchmark for your household size. We apply a minimum figure for the same reason.
- Take off your other commitments. Car and personal loan repayments, HECS-HELP repayments, and about 3.8% of every credit card limit each month, even if the card is paid off.
- Test the surplus at a higher rate. APRA expects banks to check you could repay at your interest rate plus 3.00 percentage points. The loan you can afford at that assessment rate is your borrowing power.
How much can I borrow on my salary?
| Situation | Estimated borrowing power |
|---|---|
| Single, $80,000 income, $2,200 a month expenses | $371,000 |
| Single, $100,000 income, $2,500 a month expenses | $470,000 |
| Same as above, with a HECS-HELP debt | $425,000 |
| Same as above, with a $10,000 credit card limit | $425,000 |
| Single, $150,000 income, $3,000 a month expenses | $737,000 |
| Couple, $100,000 + $80,000, two children, $4,500 a month expenses | $865,000 |
What reduces how much you can borrow
- Credit card limits. A $10,000 limit cuts borrowing power by about $45,000 in our example, even with a zero balance. Cancelling cards you do not use is one of the quickest fixes.
- HECS-HELP debt. Compulsory repayments come out of your income before the lender looks at what is left. On $100,000 that reduces borrowing by roughly $45,000.
- Dependants. Each child raises the minimum living expense figure lenders apply.
- Buy now pay later and car loans. Every monthly repayment reduces the surplus available for a mortgage.
- Higher interest rates. Because the buffer is added on top, every rate rise shrinks borrowing power. If the buffer were 2 points instead of 3, the $100,000 earner could borrow about $514,000.
The 6 times income limit
Since February 2026, APRA has limited how much new lending banks can write where a borrower's total debt is 6 times their gross income or more. It is not a hard ban, but loans at that level are harder to get. The calculator shows your debt-to-income ratio and flags it if you reach 6.
How to borrow more
- Pay off or close personal loans and credit cards before you apply
- Track your spending for three months so the expenses you declare are accurate and defensible
- Choose a longer loan term, which lowers the assessed repayment (compare terms in the repayment calculator)
- Apply with a partner or add a second income
- Talk to a mortgage broker, because lender policies and benchmarks vary a lot
Once you know your budget, work out the full cost of buying with the LMI and upfront costs calculator and your stamp duty.
Frequently asked questions
How much can I borrow on a $100,000 salary in Australia?
Around $470,000 as a single applicant with $2,500 a month in living expenses and no other debts, based on a 6.50% rate tested at 9.50%. A HECS debt or credit cards would reduce this.
What is the APRA serviceability buffer?
It is a margin APRA expects banks to add to your interest rate when they check whether you can afford a loan. It has been 3 percentage points since October 2021 and APRA confirmed it would stay at 3 points in May 2026.
Do lenders count my credit card limit or my balance?
The limit. Most lenders assume you pay about 3.8% of the full limit each month, whether you use the card or not.
Does HECS-HELP affect my borrowing power?
Yes. Lenders treat your compulsory HECS-HELP repayment as a regular expense, which lowers the income left to service a mortgage.
Why is this different from what my bank told me?
Each lender uses its own living expense benchmarks, income shading and credit policies. This calculator gives a general estimate. A pre-approval from a lender or broker is the only way to know your actual limit.
Sources
- APRA, macroprudential policy settings (serviceability buffer and debt-to-income limits), May 2026
- Australian Taxation Office, individual income tax rates 2026-27 and HELP repayment thresholds
- Our calculation methods