Our free borrowing power calculator gives you an instant estimate of how much you may be able to borrow, what your monthly repayments could look like, and where your LVR sits. Results are indicative only — your actual borrowing capacity will depend on your lender, credit history, and the specific details of your application.
Not sure what the numbers mean? Our brokers are here to walk you through it. Book a free assessment and we’ll give you a clear, personalised picture based on your actual situation.
Get an estimate of how much you may be able to borrow. Results are indicative only.
Want an accurate assessment? Our brokers compare 50+ lenders to find your best outcome — free, with no obligation.
Book a Free AssessmentYour borrowing capacity is not a fixed number. Every lender calculates it differently, and the same person can receive meaningfully different results from different lenders. Understanding the key factors helps you take practical steps to improve your position before you apply — or simply understand why the estimate you just received looks the way it does.
| Factor | How It Affects Borrowing Capacity | What You Can Do |
| Income | Your gross income is the starting point for every lender’s calculation. Joint applications combine both incomes, which can significantly increase capacity. | Maximise declared income: include overtime, bonuses, rental income, and government payments where lenders will accept them. |
| Living Expenses (HEM) | Lenders apply the Household Expenditure Measure (HEM) as a minimum benchmark for living costs, even if your actual spending is lower. Dependants increase the HEM threshold applied. | Reduce discretionary spending before applying. Lower declared expenses increase the surplus income available for repayments. |
| Existing Debts | Credit cards are assessed at 3% of the limit per month, not your actual balance. Car loans, personal loans, and HECS-HELP all reduce your assessed surplus income. | Pay down or close unused credit cards and Buy Now Pay Later accounts before applying. Even a $10,000 credit limit reduces borrowing capacity by roughly $30,000 to $50,000. |
| Dependants | Each dependant increases the HEM threshold lenders apply, reducing assessed surplus income. More dependants means a higher living expense floor regardless of actual spending. | This is not something to adjust artificially — lenders verify dependant details. Awareness helps you plan realistically. |
| Assessment Rate Buffer | Lenders add a minimum 3% buffer above their standard rate when stress-testing your application. They assess whether you could afford repayments if rates rose by 3%, not just at today’s rate. | A lower actual rate does not reduce the buffer — it is a regulatory requirement. Focus instead on improving income and reducing liabilities. |
| Deposit Size | A larger deposit reduces your LVR, which can unlock better rates and avoid Lenders Mortgage Insurance (LMI). At 80% LVR or below, most lenders treat applications as standard risk. | Saving a 20% deposit removes LMI entirely and often improves the rate you’re offered. The First Home Guarantee allows a 5% deposit with no LMI for eligible buyers. |
| Credit History | Your credit score influences both your approval likelihood and the rate you’re offered. Missed payments, defaults, or multiple recent credit enquiries can reduce capacity or trigger declines. | Check your credit report before applying. Avoid multiple credit applications in a short period. Allow time to resolve any adverse listings. |
A borrowing capacity calculator works from general assumptions. It cannot see your specific tax returns, credit file, employment type, or the policies of the lender most likely to approve your application at the best rate.
At Stanford Financial, our brokers assess your position across more than 50 lenders simultaneously — without triggering multiple credit enquiries on your file. Different lenders treat income, expenses, and liabilities differently. One lender might shade your overtime income at 80%. Another may accept 100%. One lender might decline a self-employed application on two years of financials. Another might work with 12 months.
We don’t just find you a loan. We find you the right loan, at the right lender, structured in the right way for your circumstances.
Whether you’re a first home buyer, refinancing, or building an investment portfolio — the numbers in a calculator are a guide. A broker turns that guide into a plan.
The calculator uses a standard serviceability model – it applies a gross-to-net income conversion, deducts declared expenses and debts, and calculates the loan amount that can be serviced at the assessment rate over your chosen term. It gives a useful starting range, but it does not replicate any individual lender’s full credit policy. Think of it as a compass, not a map.
No. This calculator runs entirely in your browser and does not submit any data to credit bureaus or lenders. Your credit score is only affected when a lender makes a formal credit enquiry as part of a loan application.
Lenders are required by APRA to assess your ability to repay at a minimum of 3% above their standard variable rate. This stress-tests whether you could still afford repayments if interest rates rose. It is the reason your assessed borrowing capacity will always be lower than a simple calculation at today’s advertised rate would suggest.
Probably not as accurate as it is for a PAYG applicant. Self-employed borrowers face a more complex income assessment — lenders typically average the last two years of taxable income from tax returns, which may not reflect your current earnings. Some lenders offer low doc home loan options that use alternative verification. Our self-employed home loans page explains how this works, and a broker assessment will give you a far more accurate picture than a general calculator can.
Lenders Mortgage Insurance (LMI) is a one-off cost charged when you borrow more than 80% of the property’s value. It protects the lender — not you — in the event of a default. On a $700,000 purchase with a 5% deposit, LMI can add $25,000 to $30,000 to your loan. First home buyers may be able to avoid LMI entirely through the First Home Guarantee, which allows a 5% deposit with no LMI for eligible buyers.
Our team is based in Springfield Central and works with clients across Queensland and Australia wide. A free assessment with Stanford Financial means one of our experienced brokers reviews your actual income, expenses, deposit position, and goals — then tells you exactly what you can borrow, at which lenders, and at what rate.
There is no cost, no obligation, and no impact on your credit file. Most clients have a clear picture within 48 hours of their initial consultation.
Ready to go beyond the estimate? Book your free assessment today — call us on 0483 980 002 or contact us online.
Want to go deeper? Here are the resources most relevant to where you are in your home loan journey.
Want a full explanation of how lenders calculate borrowing capacity, what HEM means in practice, how HECS-HELP affects your application, and what a broker can do to improve your position? Read our complete guide: How Much Can I Borrow for a Home Loan in Australia?
Explore the full range of home loan solutions Stanford Financial can help with:
