Home Loan

Borrowing Power Calculator

Estimate a workable home-loan range from your monthly comfort budget — before lender ceilings become targets. Estimate a workable borrowing power range in Australia from your monthly comfort budget, deposit, and stress-rate assumptions.

Budget-based estimate Stress-rate buffer Deposit & upfront costs Planning tool only
Key Facts
Approach Budget-based, not bank ceiling
Stress-rate buffer Adjustable in calculator
Deposit Included in property budget
Stamp duty impact Reduces property budget
Pre-approval Requires separate lender step
01INPUTS

What you can comfortably commit to repayments after expenses.

Cash deposit available at settlement.

02RESULTS
Borrowing power (base)571,457.52
Property budget (loan + deposit)691,457.52
LVR — above LMI threshold82.6%
Stress test +1% rate — borrowing515,624.75 (property 635,624.75)
Stress test +2% rate — borrowing468,068.09 (property 588,068.09)
Planning with the result

A borrowing result is a planning boundary, not a permission slip. Keep room for insurance, council rates, strata, repairs, and rate movement before treating a property range as safe. Stamp duty and settlement costs reduce what you can commit to the purchase price — property budget is smaller than borrowing power once all upfront costs are included.

Stress-rate buffer

Lenders apply a 3% serviceability buffer above the actual rate. This calculator lets you set your own buffer to model conservative scenarios.

Deposit & LVR

A deposit below 20% typically requires lenders mortgage insurance (LMI), adding to upfront costs and reducing your net property budget.

Common questions
Is borrowing power the same as lender pre-approval?
No. Borrowing power is a planning estimate. Formal pre-approval also depends on lender policy, credit checks, and documentation.
Should I use maximum borrowing power as my budget?
Usually no. A safer range leaves room for rates, insurance, council, strata, and other housing costs.
Do I need stamp duty before trusting the result?
Yes. Property budget is smaller than borrowing power once stamp duty and settlement costs are included.

Last updated 13 May 2026 Tax year 2025-26

Data sources: ATO (ato.gov.au), Services Australia

This tool is general information only, not financial advice.

Reviewed by AusTax Tools Editorial Desk

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