Borrowing Power Calculator

Complete the My Details, Income, and Expenses tabs to see how much you can borrow.

🏡 What Is Borrowing Power?

Borrowing power is the amount of money a bank or lender may let you borrow. It depends on your income, expenses, and overall financial health. The more borrowing power you have, the bigger loan you may be able to get.

You can use our borrowing power calculator to check how much you might be able to borrow, and what your repayments could be. Just enter your income and expenses, and we’ll do the rest!

 

🧮 How Is Borrowing Power Calculated?

Borrowing power is worked out by looking at your money coming in (income) and going out (expenses). The calculator checks if you can afford to repay a home loan over time based on your current situation.

 

📈 How Can I Increase My Borrowing Power?

Here are 10 smart ways to boost your borrowing power:

  1. 🔍 Know Your Credit Score
    Your credit score shows how well you manage your money. A good score helps with loan approval. You can check your score for free online.
  2. 💳 Reduce Your Debts
    Pay down credit cards or personal loans. High-interest debt lowers how much you can borrow. If possible, clear your card every month to avoid interest.
  3. ✂️ Lower Your Credit Limits
    Even unused credit cards count as debt. Reduce your card limits or cancel cards you don’t use. Lenders assume you’ll use the full limit.
  4. 🏦 Pick the Right Loan
    Choose a home loan that suits your needs. Some options like Green or Solar Loans offer lower rates, which can increase your borrowing power.
  5. 📁 Get Your Finances in Order
    Make sure your tax returns are done and your income info is up to date. Being organised makes applying easier and quicker.
  6. 💰 Save a Bigger Deposit
    A larger deposit shows you’re good at saving. It also lowers your repayments and reduces the amount of interest you pay.
  7. 📉 Cut Back on Spending
    Reduce everyday costs like bills, subscriptions, and extras. Less spending means more borrowing power. Try comparing phone, internet and energy plans to save more.
  8. 👫 Apply with a Partner
    Buying with someone else (like a spouse) combines your incomes. This usually increases your borrowing power compared to buying alone.
  9. 💼 Increase Your Income
    Boosting your income helps. You might take extra shifts, get a promotion, or rent out a spare room.
  10. ⏳ Choose a Longer Loan Term
    A longer loan term can mean smaller monthly repayments. For example, a 30-year loan has lower monthly payments than a 25-year loan — but you’ll pay more in interest over time.