Advanced Finance
Home Loan Affordability Calculator
Estimate the maximum property price and loan you can afford based on your income, expenses, and deposit.
How this calculator works
Calculates maximum affordable repayments based on 30% of gross income minus existing debts and a living expense allowance (adjusted for dependants). Then works backwards from repayment to maximum loan using the bank assessment rate (actual rate + 3% buffer). Maximum property price is loan plus deposit minus purchase costs.
Before tax — include regular overtime, bonuses if consistent
Leave 0 for single applicants
Food, utilities, transport, subscriptions, etc.
Car loan, personal loan, credit card minimum payments
Banks assess at ~3% above this rate for serviceability
Children or other dependants — reduces borrowing power
Our pick
The Barefoot Investor (Classic Edition)
Understanding your numbers is step one. This is the book most Australians start with.
We independently recommend products. We may earn a commission at no extra cost to you.
If you're looking to go deeper on this, the Monthly Budget Planner & Expense Tracker ($10.99, 5★ from 4 reviews) is worth a look. Affiliate link
FAQ
Frequently asked questions
How much can I borrow on a $100,000 salary?
As a rough guide, banks lend 5-6x your gross income for a single applicant with no debts. On $100k, that is roughly $500k-$600k. However, actual borrowing power depends heavily on expenses, debts, dependants, and the assessment rate banks use (typically 3% above the actual rate).
What deposit do I need for a home loan?
A 20% deposit avoids Lenders Mortgage Insurance (LMI). With 5-10% deposit, you can still borrow but will pay LMI ($5,000-$30,000+). Some lenders offer 5% deposit loans. First Home Guarantee lets eligible buyers buy with 5% and no LMI.
What is the serviceability buffer?
APRA requires banks to assess borrowers at an interest rate at least 3 percentage points above the loan product rate. So if your rate is 6.5%, the bank tests whether you can afford repayments at 9.5%.
Do lenders use HEM or my actual expenses?
Since the royal commission, most lenders use the higher of your declared expenses or the Household Expenditure Measure (HEM) benchmark. HEM is a modest living standard based on household size. Being transparent about expenses is important.
Related
Related calculators
Mortgage Repayment Calculator
Calculate your home loan repayments, total interest payable, and amortisation schedule.
Open calculatorStamp Duty Calculator — All States
Compare stamp duty across all Australian states and territories on one page.
Open calculatorRefinance Savings Calculator
Compare your current home loan to a new one and calculate monthly savings, break-even, and total savings.
Open calculatorOffset Account Savings Calculator
Calculate how much interest and time an offset account saves on your home loan.
Open calculatorLearn
Related articles & guides
HELP Debt Repayment Explained: How Student Loans Work in Australia
Australia's HELP scheme lets you study now and repay later — but the repayment system catches many graduates off guard. Here's exactly how your student loan gets repaid through your tax return.
Read moreThe Power of Compound Interest: Why Starting Early Changes Everything
Compound interest turns modest, regular savings into serious wealth — but only if you start early enough. Here's how it works, with real Australian numbers to make the case.
Read moreCredit Card Debt Payoff Strategies: The Fastest Ways to Get Debt-Free
Credit card interest rates in Australia average around 20% — one of the most expensive forms of debt you can carry. Here are the proven strategies to pay it off faster and save thousands in interest.
Read moreHow Much Can I Borrow? What Banks Actually Look At in 2026
The number your bank will lend you isn't just about your income. It's a formula built from income, debts, expenses, number of dependants, interest rate buffers, and the type of loan. Here's exactly how borrowing power is calculated — and how to improve yours.
Read more