How is borrowing power calculated?

Lenders take your income, subtract living expenses, existing debt repayments and a buffer on the new loan rate (usually about 3% above actual), and work out what repayment the remainder supports. Each lender's formula and expense floors differ.

Why do lenders give different borrowing amounts?

Different treatment of overtime, bonuses, rental income, existing debts and living expenses. Between the most and least generous lender, the difference can exceed $200,000 on the same application.

How can I increase my borrowing power?

Common levers: close unused credit cards (limits count even if unused), consolidate debts, document all income, and — most powerfully — apply with the lender whose calculator favours your profile.

Is this calculator's result what I'll be approved for?

No — it's a generic estimate for planning. A quick strategy call gives you a real figure tested against actual lender calculators.

Free Tool

Borrowing Power Calculator

Estimate how much a lender might let you borrow based on your income, expenses and existing commitments. Remember: this is a generic estimate — real borrowing power varies enormously between lenders, which is exactly where a broker earns their keep.

Your annual income (before tax)$100,000

$30k$400k

Partner annual income$0

$0$400k

Monthly living expenses$3,000

$1.5k$12k

Other monthly loan repayments$500

$0$8k

Total credit card limits$5,000

$0$80k

Interest rate6.00%

4%10%

Estimated borrowing power

$353,000

Est. monthly repayment$2,119

Assessed with buffer9.00%

Monthly surplus$2,844

Generic estimate using a simplified tax and assessment model over 30 years. Real borrowing power varies significantly between lenders - often by six figures.

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