How much could I borrow?

Borrowing power or borrowing capacity refers to the estimated amount that you may be able to borrow for a home loan, calculated generally as your net income (income after tax) minus your expenses. Your expenses include all your daily living costs and regular financial commitments like bills, groceries and petrol, as well as any other debts you hold such as a credit card, car loan or personal loan.

Once you have a ballpark figure for your borrowing power you’ll be able to house hunt with a price range in mind. See our tips for what to consider when working out how much to borrow.

Generally speaking, your borrowing power is calculated as your net income minus your expenses. Your expenses can be impacted by things like the number of dependents in your family, any current home or personal loan repayments and other financial commitments such as private health insurance. The more accurate the details you enter into the calculator, the more realistic your estimated borrowing capacity is likely to be – so you may want to start by understanding your expenses.

The borrowing power calculator estimates how much you may be able to borrow based on the information you provide and the following assumptions:

• Loan term of 30 years
• Principal and interest repayments
• ANZ Standard Variable rate for home loans or an ANZ Standard Variable rate for residential investment property loans, depending on the type of property you select. Rate includes a discount on the ANZ Standard Variable index rate. 

Note the borrowing power calculator is designed to give you an idea of how much you might be able to borrow, but it shouldn’t be taken as a guarantee that you’ll be able to borrow this amount. It doesn’t take into account your complete financial position or whether you meet home loan eligibility criteria. For a more detailed conversation and to discuss next steps, speak with one of our home loan specialists.

There are several factors that can impact how much you can borrow for your mortgage (apart from income and expenses) such as outstanding credit card or personal loan debts, credit limits on open credit card accounts, and your credit history. If you’re planning to apply for a home loan, chat with one of our home loan specialists for details on which aspects of your financial circumstances have the greatest potential to impact your borrowing power.

Having a reliable source of income is important when it comes to estimating your borrowing power, but it’s not quite as simple as the more you earn, the greater your borrowing capacity. When looking at what you can afford to borrow, in addition to your income, a lender will take into account your current expenses as well as your broader financial circumstances, behaviours and any ongoing financial commitments. These indicators are likely to have just as much of an impact on your borrowing power as your salary. See What influences my borrowing capacity?