How Much Can I Borrow?

How much can I borrow calculator will determine what amount a lender may lend you based on your income and expenses. This is a guideline and most institutions will also take into consideration the location and type of property as well as personal credit history.

Assumptions:

• Income is taken as you and your partner's (if you have one) net incomes, rental incomes and bonus etc if applicable.
• Expenses that you can enter are living expenses (minus rent), any loans, car loans & credit card repayments.
• The amount you can contribute to the loan is calculated as the net monthly income minus net monthly expenses.
• Living Expenses: This calculator assumes a Single Applicant's annual living expenses are $32,000, a Joint Applicant's living expenses per year are: $48,000 and each dependant will cost $7,500 annually. If your actual living expenses are more than this, the calculator will use the values you input.
• Credit Card repayments are calculated at 3% - 5% of the Limit.
  100% of the Income amount is used
  80% of the rental income amount is used.
• The borrowing amount is calculated using the inputed rate, plus a buffer of 3% is added to that rate. This is to ensure the borrower can repay the loan should interest rates rise in the future.
• The borrowing amount is rounded down to the nearest $1000.
• Some lenders have a minimum borrowing amount.
• One year is 52 weeks exactly, a month is 52/12 weeks and a fortnight is 26 weeks.
• Interest is calculated by compounding on the same frequency as the repayment stated, i.e. weekly, fortnightly or monthly.
• Repayments are made at the start of each period.
• Rounding is made at the end of the calculations and not at each payment period
• It does not take into account up-front fees and monthly/annual account fees.
• You can email your results to yourself and if you request, a copy of your results and contact information is sent to the web site owner.
• You can print your results for future reference.
• You should consult a finance professional before you make decisions based on this calculator, your lenders calculator may give a higher or lower result.