Borrowing Power

The maximum home loan amount a lender will approve based on your income, expenses and debts.

Borrowing power (sometimes called borrowing capacity) is the maximum loan a lender will offer you after running their serviceability calculation. It depends on income, declared expenses, existing debts, household size, the APRA buffer rate, and the lender's HEM benchmark. Different lenders calculate it differently — borrowing power can vary by $100,000+ between Big-4 banks and specialist lenders for the same applicant.