Borrowing power: what a lender would actually lend you.
Assessed the way lenders do — at your rate plus APRA’s 3% serviceability buffer1, against your after-tax income and commitments.
- 1 APRA serviceability buffer reaffirmed July 2025. We reverse the amortisation at the buffered rate. Estimate only.
How much can I borrow?
Lenders don't lend a flat multiple of your income. They run a serviceability test. They take your after-tax income, subtract your living expenses and existing repayments, and check the leftover covers a home-loan repayment calculated not at today's rate but at your rate plus a buffer. Since October 2021 APRA has set that buffer at 3 percentage points, so a 6% loan is tested near 9%.
Why your lender's number will differ
Two big reasons. First, lenders use the greater of your stated expenses or the Household Expenditure Measure (HEM), a benchmark minimum, so understating expenses won't help. Second, they shade some income (overtime, bonuses, rent) and treat credit-card limits as debt. Treat this as a starting estimate, then get a real assessment.
Common questions
Does a HECS/HELP debt reduce how much I can borrow?+
Yes, your compulsory HELP repayment is an ongoing commitment lenders count against your income. Add it to "other monthly repayments" above.
Will a higher deposit let me borrow more?+
It lets you buy more (loan + deposit), and getting to a 20% deposit avoids LMI, but it doesn't raise the loan your income can service, which is set by serviceability.