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Wondering ‘how much can I borrow?’ Get a quick estimate with our borrowing power calculator.
Borrowing power calculator.
Wondering ‘how much can I borrow?’ Get a quick estimate with our borrowing power calculator.
Calculate your borrowing power.
Enter your income and expenses to find out how much you could borrow for a home loan.
Based on our Flexible home loan with Member Package option (annual fee $395), which currently offers a 3.69% p.a. variable rate1 (4.72% p.a. comparison rate2). This assumes 1) a loan that is for owner occupier purposes with principal and interest repayments, 2) a loan amount of more than $400k but less than $700k and 3) where the amount borrowed is more than 70% but not greater than 80% of the value of the real estate used as security.
Based on our flexible home loan on a 3.69% p.a. variable rate1 (4.72% p.a. comparison rate2). This rate assumes an LVR of 80-90%. If your LVR is less than 80% ME may be able to offer you a better rate.
Next
You could borrow
$XXX,XXX
Your deposit amount
$XXX,XXX
Your loan to value ratio would be XX%.
For this calculation the loan to value ratio cannot exceed 95%.
Your estimated total purchase power
$XXX,XXX
Loan term
Unfortunately your borrowing power has gone into negative. Maybe re-check your numbers?
Monthly repayments
$1,616
This is 41% of your income after tax.
Remaining monthly income
$2,114
Worked out based on your income with no tax minimisation; your financial situation may vary significantly.
Home loan calculators.
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Find out more than just how much you can borrow. Our handy calculators make light work of the number game.
Connect with one of our home loan specialists.
Want to learn more about your borrowing power, or how we can help find you the best home loan?
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1300 540 181
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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
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.
They’ll also look at existing debts and financial commitments, such as credit cards and lease agreements (e.g. car and mobile).
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.
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.
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.
The legal stuff.
The legal stuff.
- Interest rates are current as at
12-Dec-2024 and are subject to change. The variable interest rate may include a discount or margin that is applied to the product’s variable reference rate. Discounts are offered to new home loan applications only. The discount cannot be used with any other rate promotion. Existing applications, internal refinances, top ups, additional advances or variations of existing home loans are not eligible. We may change or withdraw any discount or margin at any time.
- Home Loan comparison rates are based on a loan of $150,000 for a term of 25 years, repaid monthly. WARNING: These comparison rates are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in different comparison rates. The comparison rates for interest only fixed loans are based on the interest-only period being equal to the fixed rate term.
The results from this calculator should be used as an indication only. Results do not represent, quotes, pre-qualifications for any product or an offer to provide credit. Individual institutions apply different formulas. Information such as interest rates quoted and default figures used in the assumptions are subject to change.
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.
This 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.
Terms, conditions, fees and charges apply. Applications are subject to credit approval.