How much could you borrow?
A lender does not start from the price of the house. It starts from what is left each month after tax, living costs and existing debts, then tests that surplus at a rate higher than the one you will pay. This tool follows the same order.
No rates are quoted on this site. Where a rate is needed, you enter the one you have been offered. Nothing here is recorded or sent to us.
At a glance
- You enter
- Income, living costs, commitments, card limits and the rate you have been offered or expect
- You see
- A borrowing estimate, the monthly surplus behind it and the repayment at your rate
- Assumed
- 2026-27 resident tax rates, a 3 percentage point assessment buffer, 3.8% of card limits a month
The method, in the order a lender uses it.
Every figure above comes from these steps and nothing else. If a lender's number differs from ours, one of the items in the second list is usually the reason.
Net income
Each applicant's income is taxed on the 2026-27 resident scale with the 2% Medicare levy and no offsets. Rental income is reduced by 20% before it is added.
Monthly surplus
Net monthly income less living expenses, existing repayments and 3.8% of total card limits.
Capacity
The surplus is treated as a repayment at your rate plus the buffer over the loan term. The present value of those repayments is the estimate.
Repayment shown
The estimate is then repaid at your actual rate so you can see what it would cost each month.
What this tool does not include
- Living expense benchmarks: if your declared figure is below the lender's benchmark for your household, the benchmark is used.
- Income policy: bonus, overtime, commission, casual and self-employed income are counted differently by every lender.
- Dependants, HECS balances, child support and guarantor arrangements.
- Lender and postcode limits, loan-to-value limits and lenders mortgage insurance.
Asked before the calculator, and after it.
Is borrowing power the same as what a lender will approve?
No. It is a capacity estimate built from income and outgoings. Approval also depends on the security, the deposit, your credit file, the lender's policy on your income type and the way the application is presented. Serviceability, in the glossary.
Why does the calculator add a buffer to my rate?
Lenders must test that you could still meet repayments if rates rose. The prudential guidance is a buffer of at least 3 percentage points above the actual rate, so the estimate uses that by default. You can change it.
Why is my card limit counted when I pay it off every month?
Lenders assess the limit, not the balance, because you could draw it tomorrow. Reducing or closing unused cards before applying is one of the quickest ways to lift borrowing capacity.
Does two incomes double the borrowing power?
Not quite. Tax is calculated per person, so two moderate incomes often produce more net income than one large one, but living expenses for a couple are also higher. The tool models both.
Same discipline, different question.
Each shows its method and its assumptions. None quotes a rate. All six tools.
What will the repayments be?
Principal and interest, interest-only for a period, weekly or monthly, with or without extra repayments.
Open Refinance savingsIs switching worth it?
A lower rate is not automatically a saving.
Open Stamp dutyWhat will the government charge?
Transfer duty is the largest cost of buying after the price itself and it differs by state, by purpose and by whether it is your first home.
Open Fixed rate endingWhat happens when my fixed rate ends?
When a fixed term ends the loan reverts to the lender's variable rate, and the repayment moves on the day.
Open Development feasibilityDoes the project stack up?
Before a lender, a valuer or a quantity surveyor looks at a project, a developer needs a first answer to one question: what margin is left after every cost, including the cost of the money.
Open
When the number raises a question, ask it.
A finance review starts with a conversation and a written position from Dayan Kasturiratna, who provides the credit assistance on every file. No credit check to start.
Calculators on this page provide estimates for general information only, from the figures you enter and the assumptions shown. They do not take account of your objectives, financial situation or needs, are not credit assistance, an offer or an approval, and should not be relied on without checking with your lender, conveyancer or adviser. Opulent Finance does not provide tax, legal or accounting advice.
