Home Loan Affordability Calculator
Estimate the maximum property price and loan you can afford based on your income, expenses, and deposit.
Before tax — include regular overtime, bonuses if consistent
Leave 0 for single applicants
Food, utilities, transport, subscriptions, etc.
Car loan, personal loan, credit card minimum payments
Banks assess at ~3% above this rate for serviceability
Children or other dependants — reduces borrowing power
How It Works
Calculates maximum affordable repayments based on 30% of gross income minus existing debts and a living expense allowance (adjusted for dependants). Then works backwards from repayment to maximum loan using the bank assessment rate (actual rate + 3% buffer). Maximum property price is loan plus deposit minus purchase costs.
Frequently Asked Questions
How much can I borrow on a $100,000 salary?
As a rough guide, banks lend 5-6x your gross income for a single applicant with no debts. On $100k, that is roughly $500k-$600k. However, actual borrowing power depends heavily on expenses, debts, dependants, and the assessment rate banks use (typically 3% above the actual rate).
What deposit do I need for a home loan?
A 20% deposit avoids Lenders Mortgage Insurance (LMI). With 5-10% deposit, you can still borrow but will pay LMI ($5,000-$30,000+). Some lenders offer 5% deposit loans. First Home Guarantee lets eligible buyers buy with 5% and no LMI.
What is the serviceability buffer?
APRA requires banks to assess borrowers at an interest rate at least 3 percentage points above the loan product rate. So if your rate is 6.5%, the bank tests whether you can afford repayments at 9.5%.
Do lenders use HEM or my actual expenses?
Since the royal commission, most lenders use the higher of your declared expenses or the Household Expenditure Measure (HEM) benchmark. HEM is a modest living standard based on household size. Being transparent about expenses is important.
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