Borrowing power calculator
How much could you borrow?
Your borrowing power is the largest home loan a lender could approve, based on your income, living costs and debts, tested at a higher interest rate than you'd actually pay. Use the calculator for a quick estimate, then let our team show you how different lenders could see your situation.
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- Perth basedOur team works from Subiaco
Estimate how much you could borrow
Enter your income, living expenses, debts and household details to see a rough estimate of the loan amount a lender could consider.
Estimate only. It uses 2026-27 resident tax rates and the Medicare levy, tests repayments at your rate plus a 3% buffer over 30 years, counts 3% of card limits as a monthly cost, and uses a minimum living cost of $2,400 a month for one person or $3,400 for a couple, plus $650 per dependant, if you enter less. Lenders assess income, expenses and debts in their own ways, so this is not a quote or an offer of credit.
How lenders work out what you can borrow
Lenders take your income after tax, subtract your living costs and existing debt repayments, and work out how large a loan the money left over could repay.
Your income
Salary and wages are the starting point. Lenders often treat overtime, bonuses, allowances and FIFO roster pay with more caution, and some count only part of it.
Your living expenses
Lenders compare what you tell them you spend with their own benchmark for your household, and use whichever is higher.
Debts and credit cards
Car loans, personal loans and HELP debts all reduce your borrowing power. Credit cards count by their limit, even if you clear the balance each month, at around 3% of the limit as a monthly cost.
Dependants
Each child or dependant adds to the living costs a lender assumes, so the same income usually supports a smaller loan for a larger household.
The calculator follows the same pattern. It estimates take-home pay using the ATO's 2026-27 resident tax rates and the 2% Medicare levy, applies a living cost floor, and counts your debts and card limits as monthly commitments.
Why lenders add a 3% buffer
APRA expects banks to check that you could still afford your repayments if your interest rate were 3 percentage points higher than the rate on your loan.
This is the serviceability buffer, set by the Australian Prudential Regulation Authority. APRA confirmed in May 2026 that the setting is unchanged. That's the main reason your borrowing power can feel lower than your repayments suggest.
Our calculator starts with an interest rate of 6.2%, the Reserve Bank's average rate on new owner occupier variable loans for August 2026, so with the buffer it tests your budget at 9.2%. It assumes a 30 year loan with principal and interest repayments. You can change the rate to see how it moves your result.
APRA also limits how much new lending banks can do at six times a borrower's income or more. It rarely bites for first home buyers, but it's one reason some lenders get more careful with very large loans. To see what a loan amount means for your monthly budget, try our mortgage repayment calculator.
What can increase or reduce it
Your borrowing power generally goes up when your income rises or your commitments fall, and down when you take on new debts or your household costs grow.
- Lowering or closing credit card limits you don't use can lift your result, because lenders count the limit, not the balance
- Paying off a car or personal loan removes that repayment from the lender's sums
- Buy now pay later accounts and new debts taken on before you apply can reduce it
- A second income, a pay rise or a longer history in your job can help, depending on the lender
- A higher interest rate, or more dependants, reduces how much the same income supports
- Your deposit doesn't change your borrowing power, but it does change the price you can reach
Wondering how big your deposit needs to be? Our guide on how much deposit you need explains what changes at each level.
Why your result is only an estimate
Every lender uses its own policy for income, expenses and interest rates, so your real borrowing capacity can be noticeably higher or lower than any online calculator shows.
Two banks can look at the same payslips and come back with quite different numbers. One might count all of your FIFO allowance, another might count part of it. One might use a higher living cost benchmark, or a minimum assessment rate. A general calculator can't know those details.
That gap is where a broker earns their keep. Our team compares how lenders on our panel would treat your income and expenses, then puts your application forward where it fits best. We're on your side, not the bank's, and we'll be upfront about what's realistic.
When you're ready to start looking at homes, pre-approval turns your estimate into a lender's conditional figure you can shop with.
How we help you borrow with confidence
We look at your full financial picture, test it against different lenders' policies and show you a realistic borrowing range before you start house hunting.
Have a chat
Tell us about your income, roster, savings and debts. No jargon, no obligation, and no credit check just to talk.
We run the numbers
We test your situation against several lenders' policies, rather than one calculator, to find a realistic range.
See your options
We show you what each lender could offer and what could move the number, so you can decide with the luxury of choice.
Get pre-approved
We prepare the application, hold the pressure points with the lender and keep you updated through to settlement.
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"Maddy has been exceptional helping us navigate getting our mortgage to build our home. Always super friendly and always has the time to answer any burning questions. Would highly recommend Maddy and Oui Finance to everyone!"
Frequently asked questions
How much can I borrow for a home loan?
How much you can borrow depends on your income, living expenses, debts and dependants, tested at a higher interest rate than the one on your loan.
The calculator above gives a quick estimate. A lender's actual figure can differ, which is why we compare a few before you apply.
What is borrowing capacity?
Borrowing capacity, also called borrowing power, is the maximum loan amount a lender is willing to approve based on your ability to make repayments.
It's different from what you might feel comfortable repaying, so it's worth looking at both numbers before you set a budget.
Why do lenders give different borrowing capacity results?
Lenders give different results because each one uses its own rules for counting income, estimating living costs and setting the rate it tests you at.
Overtime, bonuses, allowances and self-employed income are where the differences are often biggest.
Do credit cards reduce how much I can borrow?
Yes, lenders count your credit card limit as a monthly commitment even if you pay it off in full, so a high unused limit can reduce your borrowing power.
Some people choose to lower their limits before applying. We can talk through whether that could make a difference for you.
Is a borrowing capacity calculator accurate?
A borrowing capacity calculator gives a useful ballpark, but it can't match a lender's full assessment of your documents, credit history and policy details.
Treat the result as a starting point for a conversation, not a figure to make an offer on.
Find out what you could really borrow
A first chat with Oui Finance is complimentary, and we'll give you an honest view of your borrowing range across the lenders we work with.
Send us a few details and one of our brokers will be in touch. You can also call us on 0448 383 336.
This page is general information only and does not take your personal circumstances into account. The calculator gives an estimate only, as a general guide, and is not a quote, a pre-approval or an offer of credit. It uses simplified assumptions, including an estimate of take-home pay from 2026-27 resident tax rates and the Medicare levy, a default interest rate with a 3 percentage point buffer, a 30 year principal and interest loan, credit card commitments of 3% of the limit and a minimum living cost figure that is not any lender's benchmark. It is not tax advice. Lenders assess income, expenses and interest rates differently, so the amount a lender approves may be higher or lower. Lender credit criteria, terms, conditions, fees and charges apply, and your full financial situation will be reviewed before any offer or product is accepted.