Borrowing power is an estimate of the loan you could support based on your financial position and a lender’s assessment. It differs from your property budget, which also depends on your deposit and purchase costs.

A calculator provides a starting point for planning. It does not confirm that a lender will approve that amount.

Start with the Mortgager calculator using your income and expenses. Follow the expense field’s instructions so dependant costs are not counted twice.

For a more tailored view, a Mortgager broker can review your income, commitments and property plans, then explain how different lender policies may affect your options.
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Lenders assess more detail than a quick calculator can capture. They may treat overtime, bonuses, rental income and existing debts differently, and test whether you could manage repayments at a higher interest rate.

Your verified expenses, credit history, loan term and the property offered as security can also change the outcome. Mortgager’s online estimate does not reproduce an individual lender’s credit policy.

The maximum available loan may be more than you want to commit to. Consider what would remain after repayments, regular bills, savings and the activities that matter to you.

Allow room for unexpected costs and changes in income or interest rates. A single percentage of income cannot show whether a loan will be comfortable for every household.

Supporting other people can leave less income available for mortgage repayments. Lenders consider household size and expenses such as food, education and childcare when reviewing an application.

The effect depends on your circumstances and the lender’s approach. Any dependant allowance in an online calculator is an estimate, not a universal amount required by Australian regulation.

Some lenders accept a guarantee supported by another property as additional security. Depending on the arrangement, this may help with deposit requirements or reduce the need for lenders mortgage insurance.

It does not remove the need to demonstrate that you can repay the loan. A guarantor can become responsible for the guaranteed debt, and their property may be at risk. They should obtain independent legal and financial advice before agreeing.

Useful steps may include reducing outstanding debts, reviewing unused credit limits, keeping repayments up to date and building a consistent savings record.

Accurate income records and a realistic household budget can also help a broker assess your options. A larger deposit can reduce the amount you need to borrow. Extending a loan term may lower monthly repayments, but can increase total interest paid.

They can. HELP repayments reduce the income available for a mortgage. Lenders may also assess a credit card using its approved limit, even when you pay the balance in full each month.

How a HELP debt is treated can depend on lender policy and how soon it is expected to be repaid. Tell your broker about all debts and credit facilities so the assessment reflects your commitments.

A larger deposit may increase the property price you can consider without increasing the loan. It can also reduce the proportion of the property’s value that needs to be financed.

Your ability to service repayments is assessed separately. Set aside money for applicable duty, conveyancing, inspections and other purchase costs when working out how much of your savings is available as a deposit

Equity is the property’s current value minus the debt secured against it. The amount a lender may let you access can be less than that total.

For illustration, if a lender allows borrowing up to 80% of a property valued at $700,000, with $350,000 owing:

$700,000 × 80% = $560,000
$560,000 − $350,000 = $210,000 of potential additional borrowing before costs.

The 80% figure is an example, not an entitlement. The lender’s valuation, loan limits and your ability to repay determine what may be available.

Subject to approval, additional borrowing secured against your current property may help fund a deposit or purchase costs for another property.

Accessing equity creates or increases debt; it is not free cash. You need to be able to manage the combined repayments, and property used as security can be at risk if repayments are not met.

Using this calculator does not perform a credit enquiry and does not affect your credit score.

A later loan application is a separate process and may involve a lender checking your credit file. Your broker can explain the next steps before you proceed.