Borrowing Power Calculator Australia 2026
See how much you can borrow for a home loan — an honest estimate built on real Australian lending rules, including the APRA stress-test. Free, no sign-up.
Built by Anish Puri, Founder & Editor of NestPath · Updated
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How Much Can I Borrow for a Home Loan?
Your borrowing power — sometimes called borrowing capacity — is the maximum amount an Australian lender will lend you based on your income, living expenses, existing debts and the current interest rate plus a 3% APRA-mandated stress-test buffer. As a very rough rule of thumb, most lenders will lend 5–6 times your gross annual income, but this ceiling moves dramatically based on your specific financial situation.
Most first home buyers are surprised to learn that borrowing power varies between lenders by $50,000–$100,000 for the same person. Each lender uses a different expense benchmark (HEM vs actuals), different income shading rules for bonuses and overtime, and different credit policies for HECS, casual income and rental income. Using an independent borrowing power calculator gives you a baseline number before you speak to any lender.
For a deeper dive, read our guide on how much you can really borrow — it covers the gap between calculator estimates, bank maximums, and what you can comfortably afford to repay.
What Affects Your Borrowing Power?
Base salary plus shaded bonus and overtime
Full limit counts as debt, not the balance
Repayment trims your assessable income
Two kids vs none, everything else equal
The higher of your actuals or the benchmark
A 0.5% rate change or 25→30 years moves it
What typically cuts the most (single borrower)
Same person, different lender = a $50,000–$100,000 difference. Each bank uses its own expense benchmark, income shading and HECS treatment — which is exactly why a broker can often unlock more than going direct to your own bank.
Income
Lenders assess your gross income: base salary, regular overtime, bonuses, commission, rental income and certain government payments. Irregular income (bonuses, commission, overtime) is usually "shaded" — discounted by 20–50% depending on the lender. Self-employed borrowers need two years of tax returns in most cases. PAYG employees with stable income get the most favourable assessment.
Existing debts and credit cards
Every dollar of existing debt reduces your borrowing power. Credit cards are the biggest hidden killer — lenders count the full credit limit as a liability, not the balance. A $10,000 limit you never use can cut $30,000–$50,000 from your borrowing power. Car loans, personal loans and Afterpay/Zip accounts all count. Read our guide on how credit cards kill borrowing power for the full breakdown.
HECS-HELP debt
HECS is not counted as a traditional debt, but the compulsory salary repayment reduces your assessable income and therefore your borrowing capacity. On a $90,000 salary with $30,000 HECS, the compulsory repayment is ~$4,500/year — costing roughly $25,000–$35,000 in borrowing power. Some lenders treat HECS more generously than others. See our detailed guide on how HECS debt affects your home loan.
Credit card limits (not balances)
This is the single most common surprise for first home buyers. Banks assume you could max out your credit card tomorrow, so they assess your ability to service the full limit at ~3.8% per month (the regulatory monthly rate). A $15,000 limit turns into an assessed $570/month commitment — even if your balance is zero. Before you apply, reduce or cancel every card you don't actively need.
Number of dependants
Each dependant increases your assessed living expenses under the Household Expenditure Measure (HEM). A couple with no children typically has $80,000–$120,000 more borrowing power than the same couple with two children, all else equal.
Living expenses
Lenders use the higher of your declared expenses or the HEM benchmark for your household size and postcode. Being frugal doesn't always help — if your declared number is below HEM, the lender uses HEM anyway. But if your actual expenses are higher (private school fees, car payments, gym memberships, streaming subscriptions), the higher number applies and reduces capacity further.
Loan term and interest rate
A 30-year loan term lifts capacity compared to 25 years because the assessed monthly repayment is smaller. The interest rate matters even more — a 0.5% lower rate can lift your borrowing power by $20,000–$40,000 on a typical first home buyer loan. A broker compares 30+ lenders to find the rate AND the most favourable serviceability model.
How to Increase Your Borrowing Power
If your borrowing power estimate is lower than you hoped, here are the six proven strategies that actually move the number:
- Cancel unused credit cards — even a $0 balance card counts at full limit. Cut a single $10,000 card and add ~$30,000–$50,000 in capacity.
- Pay down personal loans and car loans — every $200/month of committed repayments freed up adds roughly $30,000 in borrowing power.
- Reduce discretionary spending for 3 months before applying — cancel subscriptions, pause Afterpay, review insurance premiums. Lenders look at 3 months of bank statements.
- Apply jointly with a partner — a partner's income is fully included in the assessment. Two modest incomes often beat one large one because expenses don't double.
- Choose a 30-year loan term — longer term = lower assessed repayment = more capacity. You can always pay it off faster later with extra repayments.
- Use a mortgage broker — different lenders have different appetites and policies. A good broker finds the lender that gives you the highest capacity for your specific income mix, debts and expenses. Match with a free broker →
You can also use our mortgage repayment calculator to see how different loan amounts and terms translate into monthly repayments, and the stamp duty calculator to plan the upfront costs that sit on top of your deposit.
Once you're close to an offer, budget $450–$900 for a building and pest inspection before you commit — it's the cheapest way to catch $10,000+ problems before they become yours. See our full building and pest inspection guide for what's covered and how to read the report.
If you are considering building a new home rather than buying an established one, construction loans work differently — the lender drawsdown funds in stages as the build progresses, and you only pay interest on what has been drawn so far. This usually means lower borrowing costs during the build than a standard home loan of the same amount. Our guide to building a house in Australia covers 2026 build costs, the 5 progress-payment stages, and how to size a construction loan correctly.
Borrowing Power by Salary — Quick Guide
Here's a rough guide to borrowing power by annual salary in Australia in 2026. All figures assume a single borrower, no dependants, no existing debts or credit cards, a 30-year loan term and an assessment rate of around 9% (a typical ~6% offered rate plus APRA's 3% serviceability buffer). Your actual number can be $50,000–$150,000 higher or lower depending on lender, expenses and debt profile.
| Annual salary | Est. borrowing power (single, no debts) |
|---|---|
| $60,000 | $330,000 – $380,000 |
| $80,000 | $450,000 – $520,000 |
| $100,000 | $570,000 – $660,000 |
| $120,000 | $690,000 – $800,000 |
| $150,000 | $870,000 – $1,000,000 |
| Couple: $150,000 combined | $800,000 – $920,000 |
| Couple: $200,000 combined | $1,050,000 – $1,200,000 |
These are estimates only. Actual borrowing power varies by lender, expenses, debts and credit history. Use the calculator above for a personalised estimate.
A Worked Example
Here's how the numbers stack up for a typical single first home buyer — $90,000 salary, no children, no debts, 30-year loan:
Add a $10,000 credit card and it falls to ~$475,000; add $30,000 of HECS and it's ~$450,000. Run your own numbers in the calculator above.
Borrowing Power vs Your Deposit
Borrowing power sets your loan ceiling; your deposit decides how much of the price you cover yourself. Roughly, the property price you can target is your borrowing power plus your deposit (before stamp duty and costs). Here's how a ~$520,000 borrowing power plays out as your deposit grows:
| Deposit | Property price you can target | LMI? |
|---|---|---|
| $25,000 | ~$545,000 | Yes — unless 5% scheme |
| $50,000 | ~$570,000 | Yes (≈9% deposit) |
| $90,000 | ~$610,000 | Yes (≈15% deposit) |
| $145,000 | ~$665,000 | No (≈22% deposit) |
Figures assume ~$520,000 borrowing power and exclude stamp duty and buying costs. A 20% deposit avoids LMI; first home buyers can get in with 5% and no LMI through the 5% Deposit Scheme. Estimate the upfront costs with our stamp duty calculator.
Ready to find out exactly how much you can borrow?
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Find a Broker — Free →Borrowing Power — Frequently Asked Questions
How much can I borrow on a $80,000 salary?
A single borrower on $80,000 with no dependants, no existing debts and no credit cards can typically borrow between $450,000 and $520,000. Add a $10,000 credit card limit and borrowing power drops by $30,000–$50,000. Add a HECS-HELP debt and it drops by another $20,000–$35,000. Every lender assesses differently, so the range can span $70,000 or more between banks — this is why using a broker often unlocks a higher approval than going direct to your bank.
Do credit cards affect borrowing power in Australia?
Yes — significantly. Lenders count the full credit card limit as a liability, not the balance. A $10,000 credit card limit you never use still reduces your borrowing power by approximately $30,000–$50,000 because the lender assumes you could max it out tomorrow. Cancelling unused cards before you apply is one of the fastest ways to lift your approval amount.
Does HECS-HELP debt affect how much I can borrow?
Yes. While HECS isn't treated as traditional debt, the compulsory repayment deducted from your salary reduces your assessable net income, which reduces borrowing capacity. On a $90,000 salary with $30,000 in HECS, you might lose $25,000–$35,000 in borrowing power. Some lenders treat HECS more favourably than others — a broker can match you with the most generous lender for your situation.
How do I increase my borrowing power?
The six proven ways: cancel unused credit cards, pay down personal and car loans, reduce discretionary spending for 3 months before applying, apply jointly with a partner, choose a 30-year loan term instead of 25, and use a broker who can match you to the lender with the most favourable serviceability model for your specific income and debt profile.
How much deposit do I need to buy a first home?
As little as 5% with the 5% Deposit Scheme (which also waives LMI), or typically 10–20% without the scheme. Anything under 20% triggers Lenders Mortgage Insurance which can add $10,000–$30,000 to your upfront costs. You also need 3–5% of the purchase price on top for stamp duty, conveyancing and building inspections. Use our stamp duty calculator to estimate the full upfront cost.
How much can I borrow on a $100,000 salary?
A single borrower on $100,000 with no dependants and no debts can typically borrow $570,000 to $660,000 — enough for a purchase around $700,000 to $825,000 with a 20% deposit. A $10,000 credit card limit trims $30,000 to $50,000, and a $30,000 HECS-HELP debt another $25,000 to $35,000. A couple earning $100,000 combined usually lands a little lower per dollar because living expenses do not halve, but two incomes still beat one. Lenders vary by $70,000 or more, so it pays to compare.
How much can I borrow if I am self-employed?
Yes, you can borrow while self-employed, but the assessment is stricter. Most lenders want two years of tax returns and financials and use the lower (or an average) of your last two years of net profit, sometimes adding back depreciation. Businesses under two years old have fewer options, though some lenders accept one year or a low-doc loan with a larger deposit. Self-employed borrowing power often sits $50,000 to $150,000 below a PAYG employee on the same headline income because the income is shaded harder. A broker who specialises in self-employed lending matters more here than anywhere.
How much can I borrow with a $50,000 deposit?
Your deposit does not set your borrowing power — your income, expenses and debts do — but it sets how much of the price you cover yourself. With a $50,000 deposit and, say, $520,000 of borrowing power, you could target a property around $570,000 before costs. Under a 20% deposit you will usually pay Lenders Mortgage Insurance, unless you use the 5% Deposit Scheme (5% deposit, no LMI). Remember that stamp duty and buying costs come out of your deposit too, so budget 3 to 5% of the price on top.
How accurate is an online borrowing power calculator?
A well-built calculator using current Australian lending rules (including the 3% APRA serviceability buffer) will typically get you within 10–15% of what a lender will formally approve. The variation comes from lender-specific credit policy. For an exact number, speak to a broker or lender for pre-approval — the calculator is a starting point, not a guarantee.
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Everything you need to buy your first home