Borrowing Power Calculator
See an indicative borrowing capacity using your income, household type and other commitments. APRA requires lenders to assess applicants at a rate 3% above the actual loan rate, which this calculator applies automatically.
Indicative only. Lender calculators use proprietary serviceability formulas and consider many factors not modelled here.
Frequently asked questions
What is the APRA serviceability buffer?
APRA (the Australian Prudential Regulation Authority) requires authorised deposit-taking institutions to assess home loan applications using a buffer above the actual interest rate. Since October 2021 that buffer has been 3.0%. So a borrower applying at 6.0% is assessed as if the rate were 9.0%.
How realistic is this estimate?
It's indicative. Real lender calculators use proprietary serviceability formulas, the Household Expenditure Measure (HEM) benchmark plus declared expenses, separate buffers for credit card limits, and bank-specific overlays. Two lenders can give the same applicant borrowing capacity figures that differ by $150,000 or more.