How Much Can I Borrow?

The How Much Can I Borrow calculator will help you determine your borrowing power based on your current income and expenses. Your borrowing power will also depend on whether your application is a single or joint application loan, and your number of dependants. Apart from determining your maximum borrowing capacity, this calculator will also give you an estimate of what your monthly loan repayments will be.

Find Out Your Maximum Borrowing Capacity

Your borrowing power will vary between lenders and is dependant on your circumstances, and the banks lending criteria. To find out what your maximum borrowing capacity is fill in the form below or simply call us today on 13 94 62 (or +61 2 9249 3739).

* First Name:
* Last Name:
* Best contact number:
* Email:
* Postcode:
Yes, I would like to receive your newsletter:
Joint application:	-- Please select -- Yes No
Number of dependants:	-- Please select -- 0 1 2 3 4 5 6
* Net salary 1:
* Net salary type:	-- Please select -- per week per fortnight per month per year
Net salary 2:
Net salary 2 type:	-- Please select -- per week per fortnight per month per year
Other net income:
Monthly car loan payments:
Do you have credit cards?	-- Please select -- Yes No
Do you have other payments?
Other payments type:	-- Please select -- per week per fortnight per month per year
What are you borrowing for?	-- Please select -- New Home Investment Property Renovate Refinance Consolidate Debt Commercial Loan Business Loan
Interest rate information:	-- Please select -- Latest Rates Fixed Rates Higher Loan Rates Fixed vs Variable Comparative Rates
General information:	-- Please select -- New Products Available Reviewing Options First Home Buyer
Your current position:	-- Please select -- Buying Now 3 months 3-6 months 6 months Just checking my options
Deposit in hand:

Note: The results from this calculator should be used as an indication only. Results do not represent either quotes or pre-qualifications for a loan. It is advised that you consult your financial adviser before taking out a loan.

 

Calculator Assumptions

Expense Details

a) Credit card minimum monthly payment percentage – currently 5% of credit card limit

b) Core expense annual allowance – borrower assumed to have core level of annual expense, depending on whether single or joint and the number of dependants, currently as below:

Number of dependants	Single	Joint
0	$11,400	$14,400
1	$14,280	$17,280
2	$17,160	$20,160
3	$20,040	$23,040
4	$22,920	$25,920

c) Extra core expenses for more than 4 dependants – currently set at zero.

d) Maximum percentage of income available – percentage of income available for paying expenses and servicing proposed borrowing currently set at 85%.

Loan Details

a) Interest rate increase allowance buffer – calculator has capability to assume a higher interest rate than rate entered by user when determining maximum amount that can be borrowed. This allows for affordability of possible rate increases under the loan. Current version of the calculator uses an interest rate buffer of 1.5%.

b) Rounding rules for amount of loan – the calculator has the ability to round the maximum loan amount. The default is usually the current setting of the lower $1,000. Note that the amount of loan is calculated using the interest rate entered, plus any interest rate buffer, and then the resulting loan amount is rounded as required.

c) Interest rate for loan repayment – monthly repayment is calculated in respect of the rounded loan amount and using interest rate entered, not including any interest rate buffer.

Length of Month

All months are assumed to be of equal length. In reality, many loans accrue on a daily basis leading to a varying number of days’ interest dependent on the number of days in the particular month.

Number of Weeks & Fortnights in a Year

One year is assumed to contain exactly 52 weeks or 26 fortnights. This implicitly assumes that a year has 364 days rather than the actual 365 or 366.

Rounding of Amount of Each Repayment

In practice, repayments are rounded to at least the nearer cent. However the calculator uses the unrounded repayment to derive the amount of interest payable at points along the graph and in total over the full term of the loan. This assumption allows for a smooth graph and equal repayment amounts.

 

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More information and home loan help

For more information on how and where to find a better home loan deal from an extensive panel of Australian banks and secure mortgage lenders, or to speak to your local area mortgage expert, contact us on 13 94 62 (direct +61 2 9249 3739)