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Borrowing Power

Borrowing Power Calculator

Estimate how much you can borrow for your home loan using our borrowing power calculator.

Last updated: 15 August 2024. BrokerCircle's calculator reflects the updates for the 2023-2024 financial year.


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How to use this Borrowing Power Calculator


Using a borrowing power calculator is a handy way to estimate how much you may be able to borrow for a home loan. Here's a step-by-step guide:


  1. Input your annual gross income - this includes regular wages/salary, bonuses, investment dividends or rental income. Provide details for each income-earner if it's a joint loan application.
  2. List all of your current debts with their monthly repayment amounts - this should include credit card minimums, personal loans, car loans, and any other obligations you repay monthly.
  3. Enter estimates for your typical monthly living expenses - utilities bills, groceries and household items, transportation costs, entertainment, etc. Try not to underestimate these.  
  4. Select details that may impact your application - are you a first home buyer? Do you pay child support? Are any of your debts about to be paid off?
  5. Choose your loan features - will you go for principal + interest or interest-only? What loan term length do you prefer?
  6. Run the calculator! It will crunch the numbers you input and provide an estimated borrowing amount you may qualify for.
  7. Use the estimate as a guide and speak to a mortgage broker or lender to discuss pre-approval and getting your exact borrowing capacity formalised.


Adjust the factors in the calculator to get different scenarios. The estimate will show how much you can likely afford to pay back comfortably as your circumstances stand.


Disclaimer: The borrowing power estimate provided is merely a guide for illustration purposes only. It does not constitute formal financial advice or a lending pre-approval. Please consult a licensed finance professional for a personalised assessment of your borrowing capacity. Loan terms, eligibility, and actual borrowing power will be determined by lenders based on individual circumstances.


Assumptions: This calculator makes certain assumptions about the applicant and lending environment which may differ from reality, including:


  • Stable ongoing employment income at current levels 
  • Other income streams remaining consistent  
  • Interest rates and fees remaining static at today's advertised rates
  • Household expenditure estimates may not reflect actual costs
  • Applicant has a good credit history and can meet serviceability requirements 
  • All information inputted is accurate and honest
  • No expected changes to government policy, economic outlook, or regulation of lending


The estimate does not account for every personal factor that affects borrowing eligibility. Verify pre-approval amounts with your lender prior to relying on any estimate or committing to long term borrowing. Be mindful that borrowing power can change over time as your situation evolves.


I hope this provides some helpful transparency around the context in which the calculator's estimate is made. Please use any figure as a guide only in assessing affordability for your goals.


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Frequently asked questions

Top 5 Borrowing Power Calculator FAQs

What information do I need to use a borrowing power calculator?

Most calculators will ask you to input your income details, current debts with monthly repayments, credit card limits, and any other large expenses.

Why does my borrowing power estimate seem too high/too low?

The calculator makes assumptions that may not align with your actual situation when it comes to things like living expenses. You may need to adjust expenses up or income down to get a more realistic estimate.

Does a borrowing power calculator account for interest rate changes?

Most don't take potential future rate rises into account in their estimate, so the repayments shown might be lower than if rates go up in future.

What borrower types do borrowing power calculators cater for?

Most focus on those who are full-time employees, as it's easier to document their income. Self-employed borrowers may need a manual assessment.

Can I trust the borrowing estimate a calculator gives me?

The estimate is a helpful guide, but keep in mind only a lender can provide a formal pre-approval based on your verified situation. Use any estimate as a rough figure when assessing affordability.

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