Borrowing Power Calculator

Opening the Doors to Lending Possibilities

At Intellichoice we provide you with the best, easy to use and effective financial tools that can help improve your finances and prepare you for a loan or asset finance | Borrowing Power Calculator

Through a Borrowing Power Calculator, you can determine if our current finances can handle a home loan mortgage or a car financing loan. A borrowing calculator allows you to access how much loan you can afford to pay with your current expenses, debts and other financial obligations.


Interested in getting a loan? Fast online quotes available here!

Borrowing Power Calculator

This calculator is designed to give you an estimate of how much money you can borrow from a lender should be used before even searching for a property to give you an idea of how much you can afford to spend.

Purpose: The purpose of this calculator is to merely give an indication of what a lender could offer you, based on some of your basic incomes and financial commitments.

Required Salary to Qualify for a Home Loan

Real estate property costs depend on the State where the property is situated. A property in Sydney is twice the cost of a property in Darwin. Properties in Perth, Adelaide, and Hobart almost have the same home median and unit median costs. To give you an idea, these are the minimum earnings per annum required per state, to cover the average cost of a mortgage.

  • Sydney – $115,862
  • Canberra – $76,689
  • Darwin – $84,597
  • Melbourne – $86,436
  • Perth – $80,000
  • Brisbane – $73,011
  • Adelaide – $62,528
  • Hobart – $50,574

However, these figures do not guarantee you an automatic home loan approval. Other factors such as living expenses, debts, credit limits and other payments will be weighed to determine if your buying power is indeed sufficient to be able to repay a mortgage without hurting your finances.

Will You End up Under Mortgage Stress?

Mortgage stress is a loan repayment condition wherein your mortgage is equivalent or more than 30% of your income. On average, the monthly mortgage payments in Australia is anywhere between $1,500 to $3,000, some even more.

If this amount is higher than 30% of what you are earning in a month, it would be difficult for you to repay a loan unless you increase your borrowing power. Most Australian household experience mortgage stress because they fail to predict their personal living expenses and other financial liabilities versus the amount of mortgage that they will need to repay during the whole term of the mortgage. It would be ideal to include your future financial obligation in computing for your borrowing power to avoid allocating more than 30% of your future income in mortgage repayments.

How Can I Increase my Borrowing Power?

You can increase your borrowing power in different ways.

  • reduce debt
  • generate additional sources of income
  • reduce living expenses in areas possible

The higher your borrowing power is, the easier it will be to make mortgage payments without having to stretch your budget too far or to worry about not being able to afford other items on your budget list.

A Loan Specialist can help

A loan specialist can help you understand your current finances. Talk to an Intellichoice mortgage broker and strategize a system that can help increase your borrowing power. Land with better interest rates and lower fees by finding a loan specialist that connects you with the best possible bank or lender for you.

Frequently asked questions

How to use the borrowing power calculator

The borrowing power calculator is very easy to use. You just need to input your income and expenses. The financial calculator also offers the option to add additional income coming from your spouse or partner, or any other additional source of income. The interest rate and loan term of the financing that you intend to apply for can also be included in the computation. You’ll arrive at the amount of loan possible for you with your current borrowing power as the basis for its computation.

Why should you use a borrowing power calculator

A borrowing power calculator helps you determine if you can afford to pay for a certain amount of loan, given an interest rate and loan term, based on your current financial situation. If you see yourself unqualified for the target loan amount you have in mind, the borrowing power calculator helps you determine the areas that you can improve to be able to “afford” the loan amount you have in mind. This can be achieved through improving or adding a source of income, or reducing your debts and expenses.

What does the calculator show me?

This calculator assesses the amount of loan you can afford with the current source of income, living expenses, and receivables that you have. It also indicates how much you need to repay a loan with the current borrowing power that you have. Repayment terms can either be monthly, fortnightly or weekly.

Who should use this calculator?

This calculator is a useful tool for any individual who needs to figure out what the maximum amount of loan they are qualified for, with the current income and financial responsibilities that you have.

About Us

Find out why our clients wouldn’t use anyone else. Put your financial needs in the hands of the leaders in the market. Find out why we’re the mortgage broker of CHOICE! Speak to one of our finance specialists TODAY!