Estimate borrowing power
See a transparent range based on net income, living costs, commitments and an assessment-rate repayment model.
Australian borrowing-power tool
Mortgage & borrowing power calculator
Estimate how much you may be able to borrow, your possible purchase budget and indicative repayments through a guided seven-step calculator.
20+Years of combined finance expertise
5,000+People helped on their journey
40+Lenders on the panel
Why use this calculator?
A more complete starting point than a repayment figure alone
This tool combines serviceability-style inputs with your deposit and state to produce a planning range—not simply a monthly repayment.
Plan your purchase budget
Combine the borrowing estimate with your deposit and a modelled state transfer-duty allowance.
Understand debt impact
See why credit limits and ongoing repayments may reduce serviceability even when balances seem manageable.
Use realistic expenses
Choose a benchmark or enter your household costs, with the model retaining a minimum expense floor.
See visible assumptions
Review the modelled tax, serviceability buffer, income shading, loan term and duty limitations.
Prepare for a broker review
Use the estimate to ask better questions before a personalised lender-policy assessment.
What is the Capital Connections mortgage calculator for?
This calculator is designed to give Australian home buyers, property investors, builders and refinancers an early indication of possible borrowing power. Unlike a basic repayment calculator, it begins with your household profile: applicant count, dependants, income, expenses, debts, deposit and state.
It then creates a modelled borrowing range and converts the midpoint into an estimated purchase budget. The result can help you decide whether to save a larger deposit, reduce debts, adjust a property target or request a formal assessment.
It does not pre-approve a loan. A lender or broker must verify income, expenses, liabilities, credit history, security property, residency, loan purpose and lender-specific policy.
How to use the borrowing-power calculator
- Select your goal: purchase, build, commercial/business, refinance or explore.
- Describe the household: tell the model whether one or two people are applying and add dependants.
- Enter income: use annual gross income before tax and exclude employer super.
- Choose living costs: accept the modelled floor or enter your own regular monthly figure.
- Add commitments: include credit-card limits, loan repayments, existing mortgage commitments and other recurring debts.
- Add the buying plan: select state, first-home-buyer status, deposit and an indicative interest rate.
- Review the estimate: inspect the range, purchase price, duty allowance, repayment and assumptions.
How does the calculator estimate borrowing power?
The model first estimates income after Australian resident income tax and Medicare levy. It accepts 100% of salary income and 80% of optional other income. It then subtracts the higher of your entered living costs or a household benchmark, plus modelled debt commitments.
The remaining monthly capacity is converted into a 30-year principal-and-interest loan using the entered rate plus a three-percentage-point serviceability buffer. A conservative model guardrail prevents the result from growing disproportionately relative to gross assessable income.
| Input | How this model treats it | Why a lender may differ |
|---|---|---|
| Salary | 100% of entered gross income | Employment type, probation, overtime and history matter |
| Other income | 80% accepted | Each income type has its own evidence and shading rules |
| Living expenses | Higher of declared costs or model floor | Lender benchmarks and categories differ |
| Credit cards | 3.8% of limits monthly | Assessment rate differs by lender |
| Interest rate | Entered rate + 3% buffer | Lender floors and product policy may also apply |
| Loan term | 30 years | Age, strategy and acceptable term can change the result |
Why do applicant count, dependants and income matter?
A second applicant can add income, but the household also has higher modelled living costs. Dependants usually increase the minimum expense allowance because the household must cover food, housing, education, health, transport and other costs.
Lenders do not always accept every dollar of income. Base salary may be treated differently from casual income, overtime, bonuses, commissions, rent, government payments, foreign income or self-employed earnings. Documentation and history are critical.
Why can declared expenses be replaced by a higher minimum?
Lenders generally compare an applicant's declared spending with an internal or external benchmark. If the declared amount appears below the benchmark for the household, the higher amount may be used. This calculator follows that principle through a simplified expense floor.
Include groceries, utilities, transport, insurance, education, childcare, subscriptions, medical costs, recreation and other recurring spending. Do not intentionally understate expenses: a formal application requires a reasonable and accurate account of your circumstances.
How debts and unused credit limits affect borrowing power
Credit-card limits can reduce capacity even if the card is paid in full each month because the lender may assess the potential repayment on the full limit. Personal loans, car finance, buy-now-pay-later arrangements, HELP debt, existing mortgages, guarantees and maintenance commitments may also be relevant.
Closing an unnecessary card or reducing a limit may help in some cases, but do not make changes solely for a calculator result. A broker can identify which commitment actually affects the lenders suitable for your position.
How deposit and transfer duty affect the property budget
Your full savings amount is not always available as the property deposit. Transfer duty, registration, conveyancing, inspections, loan costs and moving expenses may need to be paid from the same funds. This calculator deducts a simplified transfer-duty allowance before adding remaining funds to the borrowing midpoint.
Transfer duty differs by state, property value, use, residency and eligibility for exemptions or concessions. First-home-buyer rules also change. The calculator records first-home-buyer status but does not automatically promise a concession.
Use the relevant state revenue authority's official calculator before signing a contract. Foreign-purchaser surcharge duty and other surcharges are not included.
Why does the calculator show a range instead of one guaranteed number?
Borrowing power is not uniform across lenders. One lender may accept an income type another shades or excludes. Expense benchmarks, credit-card assessment, rental treatment, assessment floors and maximum debt-to-income tolerance can also vary.
The midpoint is the model's central estimate. The lower and upper values show a deliberately narrow planning range around that figure. They are not lender quotes. Treat even the upper result as exploratory until an assessment is completed.
Practical ways to strengthen a home-loan application
- Build genuine savings and retain a separate emergency buffer.
- Review unused credit limits and expensive short-term debts.
- Keep income evidence, bank statements and tax records organised.
- Avoid new liabilities before a planned application.
- Check credit reports for incorrect information.
- Use a property budget below your absolute maximum where possible.
- Compare lender policy and total loan cost—not only the headline rate.
What this calculator cannot know
The calculator does not verify identity, residency, visa status, employment stability, credit conduct, source of deposit, genuine savings, property acceptability or lender-specific credit rules. It does not calculate LMI, foreign-purchaser surcharge, all government concessions or exact purchase costs.
Commercial and business lending uses materially different assessment methods. Choosing that purpose records your goal, but the numerical result remains a simplified residential-style borrowing estimate and should not be used to plan a commercial facility.
Mortgage and borrowing-power calculator FAQs
Is the estimated borrowing range a pre-approval?
No. It is an illustrative planning range. Pre-approval requires a lender assessment and is subject to conditions, verification and acceptable security.
Why is the assessment rate higher than the entered rate?
APRA maintains a three-percentage-point mortgage serviceability buffer for ADIs. Lenders may also apply their own assessment floors or policies.
Does the calculator include stamp duty concessions?
No specific concession is guaranteed. It uses an indicative general duty allowance. Eligibility depends on jurisdiction, buyer, property and transaction details.
Will reducing a credit-card limit increase my borrowing power?
It may help because lenders commonly assess commitments against the limit, but the impact and assessment rate vary. Seek advice before changing facilities.
Can self-employed applicants use the calculator?
Yes for an early estimate, but lender calculations often use tax returns, financial statements, add-backs and income history. The simple salary fields cannot reproduce that analysis.
Can Capital Connections help outside Adelaide?
Yes. Capital Connections supports eligible borrowers in Adelaide, Melbourne, Sydney and across Australia, including multilingual guidance in Nepali, English, Hindi and Punjabi.
Sources and review date
Calculator assumptions and educational content were reviewed on 24 August 2026. Key official references include:
Need a lender-by-lender borrowing assessment?
Capital Connections can review your full circumstances, explain suitable pathways and support your application in Nepali, English, Hindi or Punjabi.
General information only: Estimates do not consider all objectives, circumstances, lender policies or costs and are not financial, legal or tax advice. Credit is subject to eligibility, lender requirements, assessment and approval.