How much can I borrow for a home loan in Australia?

Your borrowing power depends on gross income, living expenses (HEM benchmark), existing debts, and credit card limits. APRA requires lenders to stress-test your loan at your actual rate plus 3% — so a 5.5% loan is assessed at 8.5%. On $100,000 household income with modest expenses and no existing debts, most borrowers can borrow $450,000–$600,000.

What is the APRA 3% serviceability buffer and how does it affect my borrowing?

The APRA serviceability buffer requires all regulated lenders to assess whether you can afford repayments at your actual interest rate plus 3%. This typically reduces your maximum borrowing capacity by 20–25% compared to what you could service at your actual rate. For example, a household earning $150,000 might be able to borrow ~$870,000 at 5.5% but only ~$650,000 once the buffer is applied.

Do unused credit card limits affect how much I can borrow?

Yes — every $10,000 of credit card limit reduces your home loan borrowing power by approximately $30,000–$40,000, whether you use the card or not. Lenders assume you could draw down the full limit at any time. Cancelling unused credit cards before applying for a home loan can meaningfully increase your borrowing capacity.

Free Calculator

Borrowing Power Calculator

Find out how much you can borrow based on your income, expenses, and existing debts. Uses APRA's 3% serviceability buffer — the same rules your lender applies.

How much can I borrow for a home loan?

On $100,000 household income with modest expenses and no existing debts, most Australians can borrow $450,000–$600,000. On $150,000 household income, that typically rises to $650,000–$850,000. The APRA 3% buffer is the single biggest constraint — your loan is stress-tested at your actual rate plus 3%.

•Unused credit card limits reduce borrowing by ~$35,000 per $10,000 of limit
•Non-bank lenders may apply a 2.5% buffer, which can increase capacity by $40,000–$60,000
•A broker can compare income assessment policies across 30+ lenders to maximise your approval amount

Speak to a broker about your borrowing capacity

Borrowing Power Calculator

Industry-standard methodology — APRA serviceability buffer applied

Your Situation

Buying with

Dependants

Property purpose

Your Income

Employment type

Your gross annual income *

Before-tax annual salary. Include base salary and guaranteed allowances only.

Rental income (optional)

Gross annual rent. Lenders apply 80% shading.

Other annual income (optional)

Regular bonuses, dividends, government payments (80% assessed).

Expenses & Debts

Monthly living expenses *

HEM benchmark for your household: $2,346/month. Lenders use whichever is higher — entering less than HEM won't help.

Other loan repayments / month

Car loans, personal loans, HECS/HELP, other mortgages.

Total credit card limits

Enter combined limit, not balance. Lenders assess 3.5% of limit p.a.

Other monthly commitments

Buy now pay later, maintenance payments, investment margin loans, etc.

Loan Details

Loan term

Assessment rate: 9.50% (6.50% current variable + 3.00% APRA buffer). All lenders are required by APRA to assess your ability to repay at this higher rate. Repayments shown use the 6.50% display rate.

Enter your income to get started

Your result updates in real time as you fill in each section. The more detail you add, the more accurate your estimate.

Gross income (after tax net assessed)

Household size & dependants (HEM applied)

Credit card limits reduce capacity immediately

APRA 3% buffer tested at 9.50% assessment rate

This calculator uses industry-standard methodology: APRA 3% serviceability buffer, Australian tax rates 2025–26, and Household Expenditure Measure (HEM) benchmarks from the Melbourne Institute. Results are indicative only and not a credit assessment or loan approval. For an accurate borrowing capacity assessment speak with one of our brokers.

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Repayment

Monthly, fortnightly, or weekly repayment estimates.

Stamp Duty

State-by-state stamp duty with first home buyer concessions.

LMI Cost

Lenders Mortgage Insurance estimate for deposits under 20%.

Mortgage Stress

Impact of a rate rise on your monthly repayments.

Want a Precise Assessment?

Calculators use standard assumptions. A broker compares your actual profile across 30+ lenders to find the highest approval — often $50,000–$150,000 more than the calculator shows.