How do banks calculate borrowing power in Australia?

Lenders assess your gross income, living expenses (using HEM benchmarks), existing debts including HECS, and stress-test your repayments at an assessment rate typically 3% above the loan rate. DTI limits also apply — most lenders cap borrowing at 6-8x income.

Does my partner's income increase our borrowing power?

Yes. Joint applications combine both incomes but also both debts and living expenses. In most cases a joint application significantly increases borrowing power compared to applying individually.

How can I increase my borrowing power for a home loan?

Key strategies: reduce credit card limits, pay off personal loans and car loans, avoid new credit applications before applying, reduce living expenses, save a larger deposit, and increase your income through additional employment or salary review.

Borrowing Power Calculator Australia 2026 — How Much Can I Borrow?

Borrowing Power Calculator

Income ($): Income Frequency: Living Expenses ($ per month): Existing Loan Repayments ($ per month): Credit Card Limits ($): Number of Dependents: Interest Rate (%): Loan Term (years):

Borrowing Power vs Interest Rate

Summary

Borrowing Power: $

Monthly Repayment: $

Total Interest: $

Serviceability Ratio:

🔗 Related Calculators

Home Loan Calculator Stamp Duty Calculator Income Tax Calculator Best Home Loan Rates

Free Tool

Know Your Credit Score Before You Apply

Lenders check your credit score before approving your loan. A higher score gets you better rates. Check yours free — no impact on your credit file.

Check My Credit Score Free →

📊

Borrowing Power Calculator

Results

Borrowing Power vs Interest Rate

Summary

Know Your Credit Score Before You Apply