Borrowing Power Calculator

Find out how much you can borrow to buy your home.

Use this calculator if you want an estimate of how much you can borrow from a lender. Please use this as a guide only and book a call with me if you want an accurate home buying budget to move forward with.

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*Results using this calculator are estimates only.

How Much Can I Borrow?

The one question I get asked the most as a mortgage broker is “how much can I borrow to buy a property” and it’s why we have a calculator here for you!

Borrowing power is the maximum amount a lender will lend you for a home loan. Your borrowing power is based on your savings, income, expenses, debts and credit scores. Knowing your borrowing power is important as it helps you set realistic expectations and narrow down your property search to homes within your budget.

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How To Estimate Your Borrowing Power

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1. Enter Your Income

On the first tab you will need to enter your income from your job(s) and any other sources of income like second jobs or investments.

You can choose to enter your income as before or after tax.

Enter your income before (excluding) superannuation.

You also include your dependents, which in QLD is defined as kids who are still at school who you provide for.

2. Enter Monthly Expenses

How much do you spend each month on food, petrol and car maintenance like rego, insurances, holidays, health and beauty?

You’ll notice the more you spend each month, the more it reduces your borrowing power.

3. Enter Other Loans And Credit Cards

How to calculate ‘’Minimum monthly repayments”.

This section asks for the total of all your minimum monthly repayments on your debts.

List down on paper every debt you have, which includes HECS, all personal loans for cars or boats for example, and any credit cards and store cards.

Then against each debt, write down the minimum monthly repayment, which is set by your bank and you will see it on your statement (not what you are ‘’choosing’’ to pay).

The total is your minimum month repayments, so go ahead and enter this number.

How to calculate ‘’total credit card limit”

For each of your credit and store cards, what is the limit you are approved to spend up to?

For example if you have two credit cards, one for you with a limit of $1,000 and one for your partner with a limit of $5,000, then the figure you would enter is $6,000.

As Mortgage Brokers we show you to increase your borrowing power.

Take Steps To Increase Your Borrowing Power

Our Borrowing Power Calculator will give you a low estimate

Before you start calculating here (or on any other online calculators), be aware that the estimate of what a bank will lend you for your home will almost certainly be very low!

There are a few reasons for this, with the main one being you have probably not taken steps to increase what the bank will lend you.

At Blackk Mortgage Brokers we specialise is getting you home loan ready which includes helping you to optimise what you can afford to borrow. In reality, when we are working with you on your home loan, your borrowing power will likely be significantly higher because we give you personalised strategies that directly impact the formula a bank uses to calculate borrowing power.

Talking to me at least 6 months before you are ready to buy will help you increase your borrowing power so you can buy a better home.

Four Strategies To Increase Your Borrowing Capacity

These are just a few examples of how we help you increase your borrowing power.

Reduce Credit Card Limits:
Reduce your credit card limit from $5,000 down to $1,000, to increase what you can borrow by $18,000.
Increase Your Salary:
From $100,000 p.a. to $110,000 p.a. to increase your borrowing capacity by $24,000.
From $110,000 p.a. to $120,000 p.a. to increase your borrowing capacity by $64,000.
Check Personal Loans:
Car repayment of $100 per month reduces your borrowing power by about $12,000. Consider paying down in full.
Reduce Private Health Insurance:
Reduce your private health insurance premium by $100 per month, to increase your borrowing capacity by $12,000.

Looking For More Guidance?

Top 6 Strategies on How To Increase Your Borrowing Power