Borrowing Capacity Calculator Australia โ FY 2025-26
Estimate how much you can borrow for a home loan based on your income, expenses, and existing debts. Includes the APRA 3% serviceability buffer, HECS-HELP impact, credit card limit assessment, and stamp duty by state. See how to increase your borrowing power.
Try another scenario
How to Use This Calculator
Borrowing Power tab
Enter your gross annual income, partner income (if applicable), monthly living expenses, credit card limits, car loan balance, HECS-HELP balance, and number of dependents. The calculator estimates your maximum borrowing capacity using the APRA 3% buffer above the current average product rate.
What Can I Afford? tab
Same inputs plus your deposit and state. The calculator shows the maximum property price (borrowing + deposit minus purchase costs), whether LMI is required, stamp duty estimate, and remaining cash after purchase.
Increase Borrowing tab
Enter your current borrowing estimate, credit card limits you could close, and HECS balance you could pay off. The calculator shows how much extra borrowing capacity each action unlocks.
Share your result
All inputs are encoded in the URL. Click Share to send your exact calculation to a mortgage broker or financial adviser.
The Formula
Assessment Rate = Product Rate + 3.0% APRA buffer
Example: 6.5% + 3.0% = 9.5%
Available for Repayment:
Monthly Gross = (Your Income + Partner Income) ÷ 12
Commitments = Living Expenses + HECS + Credit Cards (3% of limit) + Car Loans + Dependents
Available = min(Monthly Gross × 35%, Monthly Gross − Commitments)
Maximum Borrowing:
Max Loan = Available × [(1+r)n − 1] ÷ [r × (1+r)n]
Where r = assessment rate ÷ 12, n = loan term × 12
Max Property:
Max Property = Max Loan + Deposit − Stamp Duty − LMI − Legal Costs
Worked Example
Single borrower, $100K income, $25K HECS, $5K credit card limit
Step 1: Calculate monthly commitments
Step 2: Available for repayment
Step 3: Maximum borrowing
Step 4: How to increase
Verdict: A single borrower on $100K can borrow approximately $500,000 at the 9.5% assessment rate. Closing credit cards and paying off HECS could increase capacity by ~$70,000. Adding a co-borrower with median income would significantly increase capacity further.
Borrowing Capacity Key Rates (March 2026)
APRA serviceability and lending parameters
| Parameter | Value |
|---|---|
| APRA serviceability buffer | 3.0% above product rate |
| Average variable rate (March 2026) | ~6.5% |
| Typical assessment rate | ~9.5% |
| Max debt service ratio | 30-35% of gross income |
| Credit card assessment | 3% of limit/month |
| Standard loan term | 30 years |
LMI thresholds
| LVR Range | LMI Required? | Approximate LMI Cost |
|---|---|---|
| 0% – 80% | No | $0 |
| 80.1% – 85% | Yes | ~0.8% of loan |
| 85.1% – 90% | Yes | ~1.5% of loan |
| 90.1% – 95% | Yes | ~2.5% of loan |
| 95.1%+ | Yes | ~3.5% of loan |
LMI costs vary by lender, LVR, and loan amount. First home buyers may qualify for the First Home Guarantee (5% deposit, no LMI).
HECS-HELP repayment rates (FY 2025-26)
| Repayment Income | Rate |
|---|---|
| Below $54,435 | 0% |
| $54,436 – $62,850 | 1.0% |
| $62,851 – $74,855 | 2.0% – 3.0% |
| $74,856 – $100,174 | 3.5% – 5.5% |
| $100,175 – $150,626 | 6.0% – 9.0% |
| $159,664+ | 10.0% |
Repayment income = taxable income + net investment losses + reportable fringe benefits + reportable super contributions.