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Borrowing power calculator

How much you can borrow for a home loan in today's rate environment, shown as an honest range.

Estimated borrowing range
$0​to​$0
$0$2.5m
Monthly repayment
$0/mo
on the top of your range, at your 6.00% rate
What moves your number

The same model, re-run with one change at a time. This is the conversation FGO Finance Group has with you before an application goes anywhere near a lender.

FGO Finance Group turns the range into a lender's yes.

We assess which lender sits at the top of your range and how to structure for it. No cost, no pressure to proceed.

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Methodology

How borrowing power is calculated

The model is the one lenders actually use: a net-surplus test. Start with gross income, take out income tax, the Medicare levy and any HECS/HELP repayments to get net income. Subtract living expenses (the higher of what you declare and a household benchmark) and existing commitments, including roughly 3.8% per month of your total credit card limits whether you use them or not. What remains is the monthly surplus available to service a new loan.

That surplus is then capitalised at the assessment rate: your rate plus the 3 percentage point APRA buffer, over your term. A 6.00% loan is assessed as if it cost 9.00%. The buffer is a prudential requirement and cannot be switched off in a real assessment, so it cannot be switched off here either.

On a single income of $150,000 with no debts at 6.00% over 30 years, that produces a monthly surplus of about $6,520 and a range of roughly $797,000 to $810,000. The low end uses conservative expense and rental settings; the high end uses typical ones. Both round to the nearest $1,000 because anything finer would be false precision.

Assumptions

What we assumed

Every assumption in the model, on the table. Lenders verify your actuals and apply their own policies; that is why the output is a range.

Serviceability bufferYour rate + 3.00 percentage points, always applied (APRA APG 223). It cannot be switched off in this calculator.
Income taxATO resident rates FY2025-26, including the low income tax offset and the Medicare levy with its low-income phase-in.
Living expensesThe higher of what you declare and an indicative household floor that scales with income (industry estimate calibrated against bank benchmarks; the HEM tables lenders use are proprietary). The floor applied to your inputs is shown with your result.
Rental incomeShaded to 80% (typical scenario) and 75% (conservative scenario) for vacancy and costs.
Negative gearingOptional add-back of the tax benefit where a rental loss exists, using your marginal rate and actual (unbuffered) interest. Off by default. Banks have already removed the add-back for established property acquired in 2026. Assuming the Budget 2026-27 changes are legislated as proposed, from 1 July 2027 losses on established property bought after 12 May 2026 would be quarantined to property income. The reform is not yet law; final rules may differ once parliament passes the bill. New builds and grandfathered holdings keep the add-back under current law and the proposed reform.
Credit cards3.8% of your total limits per month, regardless of balance (the conservative end of lender convention).
HECS/HELPRepayments per the marginal ATO schedule from 1 July 2025 ($67,000 threshold), deducted from net income.
The rangeThe low end uses conservative expenses and rental shading; the high end uses typical settings. Both are rounded to the nearest $1,000.
FAQ

Frequently asked questions

How much can I borrow for a home loan in Australia?

It depends on income, expenses, commitments and the rate you are assessed at. As an indication, a single applicant on $150,000 gross with no debts, assessed at 6.00% plus the 3% buffer over 30 years, lands at roughly $797,000 to $810,000 under this model. Lenders differ from each other by six figures on the same application, which is why we show a range.

What is the 3% serviceability buffer?

APRA requires lenders to assess your repayments at your actual rate plus at least 3 percentage points, so a 6.00% loan is assessed as if it cost 9.00%. It protects against rate rises and cannot be switched off in a real assessment, so this calculator always applies it.

Why a range instead of one number?

One number would be a guess. Lenders apply different expense benchmarks, different rental shading and different policies to the same file. The low end of our range uses conservative settings, the high end typical ones, both rounded to the nearest $1,000.

Do credit card limits reduce borrowing power even if I never use them?

Yes. Lenders assess around 3.8% of the total limit as a monthly commitment regardless of balance. In this model, $20,000 of unused limits costs a single applicant on $150,000 roughly $95,000 of capacity. Cancelling unused cards before applying is one of the cheapest capacity gains available.

Does HECS/HELP debt reduce how much I can borrow?

Materially. HELP repayments come out of net income before serviceability is calculated. Under the marginal schedule from 1 July 2025 (repayments start above $67,000), a HELP debt costs an applicant on $150,000 roughly $135,000 of capacity in this model.

How do lenders treat rental income?

It is shaded, typically to 80% of gross (75% at conservative lenders), for vacancy and costs. Where the property runs at a tax loss, some assessments add the negative gearing benefit back to income. Banks have already moved to remove this for established property acquired in 2026. Assuming the Budget 2026-27 changes are legislated as proposed, from 1 July 2027 those losses would be quarantined for established property bought after 12 May 2026. The reform is not yet law; Westpac, for example, is publicly waiting on legislation before finalising its position. New builds and grandfathered holdings keep the add-back under current law and the proposed reform, which is why it is an explicit toggle here rather than a default. FGO Finance Group can assess which lenders and property classes work for your situation. Talk to us before structuring an investment purchase.

Related reading

Going further

Borrowing power is part of a bigger picture. If you are buying your first home in Melbourne, our First Home Buyer Guide Melbourne 2026 covers stamp duty concessions, the First Home Owner Grant, LMI, and the step-by-step purchase process. For context on how record migration and tight supply are shifting the affordability equation, read Record Migration, Surging Approvals, and What's Happening to Property Demand. If repayments matter more than capacity right now, the mortgage repayment calculator models rate changes and offset scenarios. Our home loans service walks through how FGO Finance Group takes that range to lenders and structures the loan.

The range is the start. The lender pick is the win.

Six figures of difference between lenders on the same application is normal. We find which lender sits at the top of your range, across banks, non-banks and private credit, at no cost to you.

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This calculator provides estimates only. Results are based on the information you enter, including the interest rate you choose, and on the general assumptions listed above. They do not constitute an offer of credit, a credit assessment, a pre-approval, or financial advice. Actual borrowing capacity depends on the lender's credit policies, verified income and expenses, your credit history, and prevailing rates at the time of application, and can differ materially from these estimates. We recommend speaking with a licensed finance broker before making decisions. FGO Finance Group Pty Ltd: Jonathan Chan is a Credit Representative (Credit Representative Number 559372) of Finsure Finance and Insurance Pty Ltd, Australian Credit Licence Number 384704.