Estimate your maximum home loan using the APRA 3% serviceability buffer, credit card and HECS/HELP impact, then check stamp duty by state and your LVR/LMI position.
Enter a property price to see your LVR and LMI position.
| Combined Net Serviceable Income | $0/mo |
| − Living Expenses | −$0/mo |
| − Credit Card Liability (3% of limits) | −$0/mo |
| − Other Loan Commitments | −$0/mo |
| Net Amount Available for Mortgage | $0/mo |
| Estimated Property Price (target) | $0 |
| Stamp Duty (Transfer Duty) | $0 |
| Lenders Mortgage Insurance (LMI) | $0 |
| Property Price | $0 |
| Loan Amount Required | $0 |
| Loan-to-Value Ratio (LVR) | 0% |
| Stamp Duty | $0 |
| Estimated Conveyancing | $1,800 |
| Lenders Mortgage Insurance (LMI) | $0 |
| Total Upfront Cash Required | $0 |
Banks must test whether you could still afford repayments if your interest rate rose by 3 percentage points — so a 6.10% loan is assessed as if it were 9.10%. This protects borrowers from over-extending if rates rise later.
Banks assess 3% of your total credit card limit as a monthly liability — regardless of your actual balance. A single unused $10,000 limit can reduce your borrowing capacity by roughly $30,000–$40,000. Cancelling unused cards before applying can meaningfully increase your capacity.
Loan-to-Value Ratio (LVR) compares your loan to the property value. Above 80% LVR, lenders require LMI to protect themselves — an insurance cost you pay. Saving a 20% deposit avoids LMI entirely, or eligible first home buyers can use the First Home Guarantee to buy with just 5% deposit and no LMI.
P&I repayments reduce your loan balance over time. Interest-Only (IO) repayments — common with investors — only cover the interest, so the loan balance doesn't shrink, and lenders generally assess IO loans more conservatively, reducing borrowing capacity.
Worked example: A single applicant on $120,000 gross (≈$7,590/month net of tax and Medicare), no dependents, $2,100 living expenses, and a $10,000 credit card limit ($300/month liability) has roughly $5,190/month serviceable. Stress-tested at 9.10% (a 6.10% actual rate plus the 3.0% APRA buffer) over 30 years, that supports a maximum borrowing capacity of approximately $645,000.
This calculator provides general estimates for informational purposes and is not financial or lending advice. Actual borrowing capacity depends on each lender's individual credit policy, exact HEM figures, and full financial position, and will vary from these estimates. Stamp duty figures are indicative approximations of state schedules and first home buyer concessions, which are indexed and change periodically — always confirm exact figures with your state revenue office. Confirm your borrowing capacity with a bank or licensed mortgage broker before making purchase decisions. Read the full Borrowing Power Calculator Guide for a complete walkthrough, including the current formulas and stamp duty tables.