Borrowing Power Calculator
Estimate maximum mortgage loan amount based on income, expenses, and APRA buffers.
Input Parameters
Calculation Results
Formula & How Borrowing Power Calculator Works
Banks assess borrowing capacity by subtracting Household Expenditure Measure (HEM) and credit limits from income, applying an APRA +3.0% interest rate buffer.
- Enter Your Gross Annual Income ($): Input your target parameter value.
- Enter Partner Gross Annual Income ($): Input your target parameter value.
- Enter Monthly Living Expenses ($): Input your target parameter value.
- Enter Total Credit Card Limits ($): Input your target parameter value.
- Enter Number of Dependents: Input your target parameter value.
- Apply Formula: Calculate using
Borrowing Capacity = Net Surplus Income / Assessed Stress Buffer Rate (8.5%). - Review Results: View exact computed answers, metrics, and worked mathematical proofs.
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Frequently Asked Questions (FAQs)
Why does credit card limit affect borrowing power?
Banks assess credit cards on total limit (assumed 3% monthly repayment), not zero balance.
Authoritative Standards & Verified Reference Citations
Calculations and mathematical logic on this page are grounded in published statutory rules, regulatory standards, and official government data published by the following bodies:
Consumer guidance on mortgage borrowing capacity, compound interest formulas, and loan fees.
Official cash rate target announcements, monetary policy statements, and national economic statistical data.
Residential mortgage serviceability buffer framework (3.0% stress test hurdle rate).
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