§ 10 — Property
How much can you actually borrow?
Australian banks stress-test your loan at rate +3% (APRA). Enter your income, expenses, and deposit to see your real borrowing power — and whether you can actually afford the repayments.
Your inputs
Income
Expenses & debt
Loan & deposit
State / territory
Estimate only. Actual borrowing capacity depends on your lender's assessment.
The result
Enter your income, expenses, and deposit to see your estimated borrowing power and maximum purchase price.
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Why your bank says less than this calculator
This calculator uses APRA's published serviceability standard (actual rate + 3%) and a 35% debt-to-income cap — broadly consistent with major lender policies. Your actual approved loan may vary for several reasons.
Lenders use their own Household Expenditure Measure (HEM) benchmarks for living costs, which can be higher or lower than what you actually spend. They also add a 3% buffer to all your existing debts, not just the new loan. And credit card limits — even if fully paid off — are treated as if you're paying the minimum on the full limit.
The safest approach: use this calculator to understand your approximate ceiling, then speak to a mortgage broker who can model your specific income, liabilities, and lender options.
Frequently Asked Questions
How do banks calculate how much you can borrow in Australia?+ open
Australian lenders use APRA's serviceability standard: they assess your ability to repay at the actual interest rate plus a 3% buffer (so if the rate is 6.5%, they test at 9.5%). They then check your income against estimated living expenses, existing debts, and ensure enough net surplus remains. Most lenders cap total debt service at roughly 30–35% of gross income.
What is the APRA 3% serviceability buffer?+ open
APRA requires lenders to assess loan serviceability at the actual interest rate plus at least 3%. This buffer protects borrowers if rates rise after settlement. It was increased from 2.5% to 3% in October 2021 when rates were near historic lows. It means a borrower approved at 6.5% is stress-tested at 9.5%, significantly reducing the maximum loan size.
Does stamp duty reduce how much I can borrow?+ open
Stamp duty reduces your effective deposit — the amount available to contribute to the property purchase after paying upfront costs. Because stamp duty can't be borrowed, a $30,000 stamp duty bill on an $800,000 property leaves you with $70,000 effective deposit if you saved $100,000. This reduces your maximum purchase price.
How can I increase my borrowing power?+ open
The main levers are: increase income (add a partner, salary increase, rental income), reduce committed expenses (cancel credit card limits — lenders assess the full limit not the balance), save a larger deposit, extend the loan term, or wait for rate cuts (each 0.5% reduction adds roughly 5% to borrowing power).