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Home Loan Borrowing Power Calculator

Estimate how much you might be able to borrow for a home, based on your income, living costs, family and other debts.

How this tool works

Reviewed 12 September 2026. Default 2026-27 resident tax and HELP; +3-point extra interest used to test repayments reviewed September 2026.

Calculation outline

  1. Calculates post-tax income using the selected resident tax year, Medicare levy, LITO and compulsory HELP. Applicant 1 taxable bonus/overtime is added to their salary before tax; applicant 2 income is taxed separately.
  2. Uses the greater of declared living costs and an internal floor: $1,800 single/$2,800 couple plus $480 per dependent and 5% of net monthly income above $3,200/$5,000. This is not licensed HEM data.
  3. Assumes card commitments of 3.8% of limits per month and no lender discount on income. Loan plus deposit is before duty, LMI, conveyancing and other costs.
  4. Solves for maximum loan amount supported by net monthly disposable income at the APRA buffered interest rate (interest rate + 3.00%).

Worked example

Example: $200,000 salary plus $50,000 ordinary taxable bonus produces the same tax and modelled loan capacity as $250,000 salary, when the same tax year and HELP flag are selected.

Limits

  • Lender policies, benchmarks, credit and debt-to-income limits vary. Neither deposit sufficiency nor property affordability is established. Other taxable income is limited to ordinary applicant-1 earnings; rental, franking and deduction treatment is excluded.
  • Uses individual Medicare thresholds; family reductions, exemptions and Medicare levy surcharge are excluded. Income is assumed fully taxable and no income discount is applied.
  • Does not substitute for a formal pre-approval assessment by an Australian credit licensee.

Sources

This tool provides general information and illustrative estimates only. It does not consider your objectives, financial situation or needs and is not personal financial, tax or legal advice.