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Home Loan Calculator Australia

Estimate how much you could borrow for a home loan based on your income, expenses and deposit — using the same APRA serviceability buffer Australian lenders apply.

Borrowing power estimate APRA 3% buffer applied LVR & deposit check Free to use
🏡 Borrowing Power Calculator
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$
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Estimated Maximum Borrowing
$0
Total purchasing power (loan + deposit)
$0
Estimated LVR
0%
Repayment at assumed rate
$0/mth
Repayment at buffer rate (+3%)
$0/mth

How Borrowing Power Is Estimated

Lenders don't simply multiply your income by a fixed number — they work out your serviceable repayment capacity: the amount left over each month after living expenses and existing debts, minus a safety margin. That surplus is then tested against a stressed ("buffer") interest rate to make sure you could still make repayments if rates rose.

This calculator follows the same logic. It takes your combined take-home pay, subtracts your expenses and debt repayments, applies a 10% safety margin, then works out the largest loan you could service at your interest rate plus the APRA-mandated 3% buffer over your chosen term.

The APRA Serviceability Buffer

Since 2021, the Australian Prudential Regulation Authority (APRA) requires all lenders to assess new home loan applications at an interest rate at least 3 percentage points above the loan's actual rate. A loan advertised at 6.24% is therefore tested as if it were 9.24%.

This buffer exists to protect both borrowers and the financial system — it stops people being approved for a loan they could only afford at today's ultra-low repayments, then finding themselves unable to pay if rates increase. It's the single biggest factor reducing borrowing power compared to a simple "6x income" rule of thumb.

What Affects Your Borrowing Power

  • Income: Take-home pay, plus reliable additional income like regular overtime or rental income (lenders typically apply a haircut to less stable income sources)
  • Living expenses: Lenders now scrutinise actual spending via the Household Expenditure Measure (HEM) or your bank statements — higher expenses directly reduce borrowing capacity
  • Existing debts: Car loans, personal loans, credit card limits (assessed at their full limit, not balance) and HECS-HELP debt all reduce serviceability
  • Deposit size: A larger deposit reduces the loan-to-value ratio (LVR), which can avoid Lenders Mortgage Insurance (LMI) above 80% LVR and sometimes unlocks better rates
  • Loan term: A longer term (30 years vs 25) lowers the monthly repayment for the same loan amount, which can increase borrowing power — but increases total interest paid

Worked Example

Couple, $9,000/month combined take-home pay

InputValue
Combined take-home pay$9,000/month
Living expenses$2,800/month
Existing debts$400/month
Deposit saved$100,000
Rate assumed / buffer rate6.24% / 9.24%
Estimated max borrowing (30 yrs)≈ $635,000
Total purchasing power≈ $735,000

Try these figures in the calculator above — small changes to expenses or existing debts can shift borrowing power by tens of thousands of dollars.

Frequently Asked Questions

How much can I borrow for a home loan in Australia?▾
Most lenders will lend approximately 4.5–6 times your gross annual income, subject to your expenses, existing debts and the APRA serviceability buffer. This calculator estimates your borrowing power based on your actual take-home pay, expenses and debts rather than a flat multiple, which is closer to how a real lender assesses your application.
What is the APRA serviceability buffer?▾
APRA requires Australian lenders to assess your ability to repay a home loan at an interest rate at least 3 percentage points above the actual loan rate. This means if you're applying for a loan at 6.24%, the bank tests whether you could still afford repayments at roughly 9.24%. It exists to ensure borrowers aren't over-extended if rates rise.
Is this home loan calculator the same as a mortgage calculator?▾
They answer different questions. This home loan calculator estimates how much you could borrow based on your income and expenses (borrowing power). Our separate Mortgage Calculator estimates your repayments and full amortisation schedule once you already know the loan amount. Use this one first, then the mortgage calculator once you have a target property price.
Why is my estimate lower than a "6 times income" rule of thumb?▾
Flat income multiples ignore your actual expenses, debts and the APRA buffer rate. Two people on the same salary with different living costs or existing debts will have very different real borrowing power — this calculator reflects that, which is why it's usually more conservative (and more realistic) than a simple multiple.

Disclaimer: This calculator provides a general estimate only and does not constitute a loan pre-approval or financial advice. Actual borrowing power depends on the specific lender's credit policy, your credit history and full financial position. Speak to a mortgage broker or lender for an accurate assessment.

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