Borrowing power calculator.
Wondering ‘how much can I borrow?’ Get a quick estimate with our borrowing power calculator.{sub-heading}
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Home loan calculators.
Find out more than just how much you can borrow. Our handy calculators make light work of the number game.
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FAQs
How much can I borrow against my salary?
From a higher deposit looking good to lower repayments making life easier, often the less you need to borrow the better. However, it’s important to ask yourself how much more than your income can you borrow? After all, you don’t want to be living in a place you can’t afford (or being at work too much to ever be home).
Our borrowing calculator is a tool that can give you a best guess for how much you can or should borrow. It also factors in things like additional income outside your regular job, which can have a significant effect on your borrowing power
Our borrowing calculator is a tool that can give you a best guess for how much you can or should borrow. It also factors in things like additional income outside your regular job, which can have a significant effect on your borrowing power
What does ‘borrowing power’ mean?
Your borrowing power is the amount a lender will loan you. To establish a figure, lenders will look at your annual income, monthly expenses, current interest rates, the loan term and the type of loan you’re applying for.
How do you calculate borrowing capacity?
The borrowing power calculator calculates the maximum loan amount available based on the income and expenses entered. Default values provided assist in giving an estimate of the expenses and other factors which may determine the amount available for a loan.
The borrowing power calculator takes into account the current cost of living, but does not take into account any expected future changes in the cost of living. The calculator uses the higher of the default estimated monthly living expenses or the living expenses you have entered.
The borrowing power calculator takes into account the current cost of living, but does not take into account any expected future changes in the cost of living. The calculator uses the higher of the default estimated monthly living expenses or the living expenses you have entered.
What is LVR?
The LVR, otherwise known as the loan to value ratio, is a ratio representing your loan amount and value of the property you’re buying.
For example, a loan to value ratio (LVR) of 80% means the amount you’re borrowing is equivalent to 80% of the property’s value. This would also mean that your initial deposit on the property would be equivalent to 20% of the property’s value. The larger your deposit, the lower your LVR will be.
For example, a loan to value ratio (LVR) of 80% means the amount you’re borrowing is equivalent to 80% of the property’s value. This would also mean that your initial deposit on the property would be equivalent to 20% of the property’s value. The larger your deposit, the lower your LVR will be.
Does equity increase borrowing power?
Equity, or the value of your current property minus the amount you still owe on your mortgage, can be used for the deposit towards the purchase of a new property. This can increase your borrowing power.
How can I increase my borrowing power?
There are many ways you can increase your own borrowing power. This mostly involves managing your cashflow and budgeting well. This can include:
- Paying all your bills and expenses on time
- Increasing your income, or reducing your expenses
- Having a consistent stream of income and income levels
Having a larger deposit can also increase your borrowing power.