BORROWING POWER CALCULATOR

Borrowing power is an estimate of how much you could borrow without overstretching your budget. Lenders want to see that once your income is reduced by housing costs, living costs, existing loan repayments, and an allowance for credit card limits — there’s still enough surplus to comfortably cover a new loan repayment. That remaining surplus is what drives your borrowing capacity.

ven if your card balance is zero — the limit still counts as potential debt. In Australia, most lenders use a buffer (often 3%) of your total credit card limit and add that amount as a monthly commitment in their calculations. That’s why running high card limits — even unused ones — can reduce your borrowing power.

After calculating your income minus monthly expenses, this tool applies a 30% capacity factor. That’s a conservative approach to avoid overstating how much you could borrow. Different lenders use different buffers — but this 30% benchmark keeps the estimate realistic and responsible.

The calculator provides guidance — but real lender pricing comes from a pre-check. That’s where your profile is run against 70+ Australian lenders to see who’s actually able to offer finance, what repayment range is realistic, and which rates you qualify for. Once you’ve completed the pre-check you can continue online or speak with an Australian-based broker to move forward.