Calculate your borrowing power and monthly repayments using real Australian lending criteria — HEM benchmarks, APRA 3% serviceability buffer, LVR, and stamp duty included.
Your Financial Details
Results use HEM benchmarks + APRA 3% buffer. Not a formal credit assessment. Chat with Finley for a personalised estimate.
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Estimated Borrowing Power
Monthly Repayment—
Total Interest Payable—
LVR—
LMI Required—
Stamp Duty (est.)—
HECS Impact on Borrowing—
Upfront Costs Total—
Rate Stress Test
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Rate -0.5%
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Current Rate
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Rate +1%
Fill in your details and hit calculate to see your borrowing power.
What if I pay extra each month?
Even small extra repayments can shave years off your loan and save tens of thousands in interest.
Years saved—
Interest saved—
New payoff date—
How borrowing power is calculated in Australia
Australian lenders use a multi-step formula — here's exactly what goes into it.
01
Net Monthly Income
Gross salary minus estimated tax, HECS repayments, and any rental income (at 80% of face value).
02
Minus HEM & Debts
Lenders use the higher of your declared expenses or the HEM benchmark. Existing credit card limits (at 3.8% p.a.) and loan repayments are deducted.
03
APRA 3% Buffer
Lenders must assess your ability to repay at the loan rate plus 3%. So at 6.14%, they test at 9.14% — significantly reducing the maximum loan size.
Frequently asked questions
How accurate is this mortgage calculator?
This calculator uses real Australian serviceability methodology — HEM benchmarks and the APRA 3% buffer — so it's a close approximation of what lenders will assess. However it's indicative only. Individual lenders apply different HEM tables, treat income types differently, and have varying credit policies. For a precise figure, chat with Finley or speak with a broker.
Does a joint application increase borrowing power?
Yes — combining two incomes typically increases borrowing power significantly. However both applicants' debts, liabilities, and HECS are also combined. Enter your partner's income in the calculator above to see the combined result.
What is the APRA serviceability buffer?
APRA (Australian Prudential Regulation Authority) requires lenders to assess your ability to make repayments at the loan interest rate plus 3%. This is a stress test to ensure you can still afford repayments if rates rise. It significantly reduces the maximum loan size compared to face-value calculations.
How does my credit card limit affect borrowing power?
Most lenders assess 3–3.8% of your total credit card limit as a monthly liability — regardless of whether you carry a balance. A 0,000 credit card limit can reduce borrowing power by 0,000–00,000. Reducing your limit before applying can help.
Ready to see which lenders will approve you?
Chat with Finley and get pre-qualified against 22 Australian lenders in 60 seconds — free, no credit check.