Free Tool · Australia
Borrowing Power Calculator
How much can an Australian bank actually lend you? Applies the APRA 3% serviceability buffer used by every major lender.
How much can an Australian bank actually lend you? Applies the APRA 3% serviceability buffer used by every major lender.
Indicative only. Each lender applies their own Household Expenditure Measure (HEM), credit policy, and buffer. Always confirm with a broker or the lender.
Australian lenders follow APRA's prudential guidance and assess your ability to service a loan at a rate 3% above the actual rate. So if the offered rate is 6.25%, the bank tests your repayments at ~9.25%. This is the single biggest factor limiting how much you can borrow.
They then subtract your ongoing commitments — living expenses (with a floor of the Household Expenditure Measure, or HEM), other debts, dependant costs, and a small buffer — from your net income. The remainder is what's available for repayments.