Borrowing power calculator

Calculate how much your potential borrowing power for your home loan could be

With our intuitive borrowing power calculator, you can see how much you may be able to borrow for your home loan. Simply enter your income and expenses and any existing loan repayments. The calculator will help calculate borrowing power based on current interest rates and the financial information you have entered.

Although calculations are only intended as an estimate guide, using a home loan borrowing power calculator is a simple and helpful tool when planning to buy a home. A borrowing power calculator can provide you with an estimated borrowing power and a guide to your budget without making a loan application.

Beyond calculating your estimate borrowing power, you can learn more about your future repayments with our borrowing home loan calculators and current home loan interest rates.

Want more help? Get in contact with us.

If you are looking for expert advice, answers to your home loan questions, or a professional opinion on current interest rates, contact us today. Or, to continue your research, take a look through our FAQs.

Borrowing Power FAQs

What is your borrowing power?

Borrowing power, also known as borrowing capacity, indicates the estimated amount you may be eligible to borrow for your home loan. Your borrowing power is based on your financial situation and credit rating. Some considerations may include; your yearly salary, ongoing debt repayments like credit cards or personal loans, how many people you financially support (dependants), and how large your deposit is.

Your living expenses also play a role in calculating your borrowing power, as these expenses indicate your ability to make loan repayments. Having a substantial deposit does not guarantee you will be able to repay your loan, which is why lenders also look at your individual and family income and expenses. Borrowing power indicates how well you can repay your loan amount over time in regular instalments.

How is borrowing power calculated?

The calculator finds your estimated borrowing power by subtracting expenses and existing debt from your net income (income after tax). Many factors can influence your expenses, including family members you financially support, existing debt, and other financial obligations, such as your health insurance policy. Your borrowing capacity will be more realistic if you enter accurate details into the calculator, so you should start by analysing your expenditures.

Our calculator will use the information you provide to estimate your borrowing power. The calculation will be based on the assumption that the loan term is 30 years, and you are making principal and interest repayments. The interest rate is based on our current Qudos home loan rate.

The borrowing power calculator was created to estimate what you may be able to borrow without needing to make a home loan application. However, the results aren't guaranteed and should only be used as a guide. For a more expansive breakdown of your borrowing power and realistic borrowing advice, we recommend reaching out to one of our Lending Specialist.

How can I increase my borrowing power?

If you’ve found your dream home and checked your borrowing capacity, only to find that you don't quite qualify for the loan you had hoped for — don't worry; there are ways to increase your borrowing power.

Consider the following options to try and increase your borrowing capacity:

Save for a larger deposit.

If your circumstances allow you to hold off on your purchase for a little longer, saving for a more substantial deposit is an efficient way to increase your borrowing power. The difference between a 10% deposit and a 20% deposit is significant and will positively affect your borrowing power and the likelihood of successfully securing a home loan.

Reduce your spending.

Completing a full audit of your spending may help to make sure that all your spending is accounted for. Lenders will look at various spending categories, including utilities, food costs, transport, and outings. Take a close look at your regular spending within your budget and consider areas you can cut back on or eliminate completely. Lenders will likely consider your last six months of spending, so establishing these habits before your application is key.

Pay down any existing debts.

When calculating your home loan borrowing power, your outstanding debt and credit history are considered. By paying down your existing debts, you could increase your borrowing power. The most critical obligations to pay off first are high-interest debts such as credit cards or personal loans. Taking care of any interest-free debt, such as student loans, is not a priority here; it will likely be more impactful to use this extra money to save more for a deposit.

Don't overextend yourself with your loan repayments.

Taking out a home loan is a long-term decision that will impact your financial future. Make this decision with the due consideration it deserves. Be realistic with your judgments about what you can afford to repay on an ongoing basis, regardless of your borrowing capacity. Although the above tips can help you to leverage your position and boost your borrowing power, it's still imperative to make a decision you’ll be comfortable with for years to come. For example, suppose you have lowered your expenses in anticipation of taking out your home loan, but the budget isn't sustainable in the future. In that case, you may be setting yourself up for an uncomfortable financial situation. Borrowing more than you can afford to pay has serious consequences.

With this in mind, consider your income and expenses and the amount you want to spend and ensure that you make a realistic decision that will be applicable for the life of the loan. Don't forget to account for interest rate increases. As interest rates rise, and you have a variable rate home loan, your repayments will rise as well.

Besides my deposit, what costs do I need to budget for when buying a house?

When it comes to buying a home, there is more money involved than just the initial deposit. Beyond working out your mortgage borrowing power, it’s wise to understand all of the costs involved.

Take a look at our checklist below to clearly understand the true costs involved in purchasing a home so you can set an overall budget that includes all fees. Going into a home purchase with a comprehensive understanding of the upfront costs may help avoid surprises. After all, agreeing to a mortgage with a term of 25 years or even longer isn’t a decision to make without all of the information. A mortgage calculator or borrowing power calculator doesn’t consider all of these costs, so it’s important to consider them in your budget.

Stamp Duty

Stamp duty is usually the most expensive upfront cost when it comes to purchasing a home. Stamp duty is a tax levied by your state or territory government. Stamp duty is applied to certain purchases such as homes, land, and investment property. It’s essential to keep up to date with the latest stamp duty requirements by checking the housing website of your state or territory government, as these laws are subject to .

LMI (Lenders Mortgage Insurance)

Lenders’ Mortgage Insurance is usually required when you borrow more than 80% of the value of your property.  It is taken out to protect the lender, not the buyer, protecting the lender if you’re unable to pay back your loan in the future. It’s a non-refundable, non-transferable one-off payment that’s charged to the borrower when a home loan is taken out. If required, homeowners may pay LMI upfront or add it to their loan, depending on how much they owe.

Building and pest inspection

It’s important to conduct building and pest inspections on a property before purchasing it to ensure that it’s structurally sound and that termites and other pests have not infested it. Building and pest inspections start at around $ and go up depending on the size of the home.

Title transfer fee

States or territories impose title transfer fees to transfer title ownership, and the costs vary state-to-state basis. To understand the transfer cost in your area, speak with the relevant government department.

Title search fee

This fee covers the cost of searching for information concerning the legal identification and ownership relating to the property you intend to purchase. It also covers any legal issues related to it. The title search fee differs from state to state. This fee is usually between $15 and $. Some states and territories allow online searches, while others, like the Northern Territory, require you to search in person at a land title .

Mortgage registration fee

A mortgage registration fee is a state or territory government fee required to register your mortgage on the property title. Around $200 is required for mortgage registration. Payment of this fee is required at settlement by the government.

Conveyancing fees

You’ll need to hire a lawyer or licensed conveyancer to transfer the property from the previous owner. This fee could include reviewing your contract to indicate the terms of the transaction and drafting your settlement documents. An average conveyancing fee can range from $500 to $1,400, and a complex transaction may cost up to $2,.

Bank fees and charges for loan applications

Your lender may charge an application fee to process and set up your mortgage loan. The lender may also charge fees if you request additional funds or make changes to your loan. Bank fees and charges differ with every lender.

Valuation fees

Banks or independent valuation firms charge valuation fees. A professional property valuation could give you a good idea of what you should offer for the home you are considering., A property valuation can cost you between $100 and $600.

Home insurance

Building insurance is required for the settlement to proceed. You might also want to consider getting contents and portable contents insurance to ensure all of your belongings are covered.

Removalist + settling into your home costs

If you plan on moving into your new home with existing furniture, you’ll likely need to hire a removalist. On top of this, there will likely be charges for connecting utilities such as electricity, internet, gas, and water.

Ongoing living costs

You'll need to consider various costs beyond your home loan repayments once you've moved in, such as council rates, strata fees, utility bills, insurance, and property maintenance.

You can better understand your financial situation by clearly understanding the costs associated with buying a home. Allowing you to take control of your financial future and make the next step in your home buying journey when you’re ready.