Borrowing power

Roughly how much could you borrow?

Gross salary a year (one applicant) $100,000

Bonus, overtime, commission or rent a year $10,000

Your living expenses a month $3,000

Credit card limits (total, even if unused) $5,000

Home loan interest rate 6.20%

Living expenses: groceries, bills, transport, insurance and the like — not rent, a mortgage or debt repayments. The starting rate, 6.20%, is the RBA’s average for new owner-occupier variable loans in July 2026 (table F6).

Estimated maximum loan

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Move a slider to see the estimate.

How it is worked out, and where each step comes from
Step	Amount	Source

Repayment at your rate –

Each extra $500 a month of expenses –

Loan ÷ gross income –

What this cannot know, so a lender’s figure may be lower:

Lenders compare your expenses with a benchmark — commonly the Melbourne Institute’s Household Expenditure Measure (HEM), a licensed figure not published here — and use whichever is higher (APRA, APG 223 para 44).
Many lenders also test at their own minimum floor rate and discount some income by more than APRA’s 20%.
HECS/HELP repayments: NOT INCLUDED. Lenders deduct them from your income (APG 223 para 53); the repayment thresholds could not be sourced for this tool.
Not modelled: existing loans, a second applicant, dependants, self-employed income, LMI and deposit limits, your credit history.

A general estimate, not a loan offer, a credit assessment or credit assistance. Principal & interest over 30 years, monthly. Tax is 2026–27 resident tax with the Medicare levy and low income tax offset, on your salary plus the other income after APRA’s 20% discount (applied before tax: APRA does not say which). Your expenses are used as you enter them. The 3.00-point buffer is APRA’s binding minimum (prudential standard APS 220, confirmed on 28 May 2026); the 20% discount and the 3%-a-month card figure are APRA guidance (APG 223), which lenders often exceed. Speak to a licensed lender or broker before relying on this. Indicative only. Not financial advice.