Borrowing Power Calculator
Find out how much you could borrow based on your income, expenses, and financial commitments. This calculator uses bank assessment criteria including the 3% APRA serviceability buffer.
Your Income
Your Household
Existing Debts
Loan Details
Assessment rate: 9.00% (includes 3% APRA buffer)
Your estimated borrowing power
$596,677
Based on 9.00% assessment rate (includes 3% buffer)
Net Monthly Income
$6,601
(after tax)
Living Expenses
$1,650
(HEM benchmark)
Debt Commitments
$150
Est. Repayment
$3,577/mo
Want a more accurate assessment based on actual lender criteria?
Get Pre-ApprovedHow is borrowing power calculated?
Australian lenders assess your borrowing capacity using several factors:
- Income: Your gross income after tax, including any partner income and other regular income sources. Tax is calculated using current ATO tax rates.
- Living expenses: Banks use the Household Expenditure Measure (HEM) benchmark, which estimates minimum living costs based on household size and location.
- Existing debts: Credit cards are assessed at 3% of the limit monthly, plus any existing loan repayments and HECS/HELP obligations.
- Serviceability buffer: APRA requires banks to assess your ability to repay at a rate 3% higher than the actual rate.
About Living Expenses (HEM)
The Household Expenditure Measure (HEM) is developed by the Melbourne Institute using data from the ABS Household Expenditure Survey. It represents the median spend on absolute basics plus a 25th percentile spend on discretionary items.
HEM benchmarks vary by:
- Household type: Single (~$1,650/mo metro) or Couple (~$2,550/mo metro)
- Dependents: ~$450/month per child (metro)
- Location: Metro areas have higher benchmarks than regional
Lenders use the higher of your declared expenses or HEM.
Note: This calculator provides estimates only. Actual borrowing capacity varies by lender and depends on additional factors including credit history, employment type, and property details.
Disclaimer: This page provides general information only and has been prepared without considering your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.