Calculator Disclaimer
The results from this calculator should be used as an indication only. Results do not represent either quotes or pre-qualifications for a loan. It is advised that you consult your financial adviser before taking out a loan. All applications are subject to each lender's credit assessment criteria. Terms and conditions, fees and charges apply. Interest rates are subject to change. Credoleap Finance Pty Ltd (ABN: 26 697 965 683) is a Credit Representative of Australian Finance Group Ltd#.
How do current lending guidelines affect your borrowing capacity?
Following current regulatory standards, Australian lenders apply a mandatory 3% serviceability buffer to evaluate your mortgage affordability if interest rates fluctuate. This assessment means your actual borrowing capacity varies considerably between institutions based on how they calculate living expenses, liabilities, and alternative income streams.
Key Credit Assessment Parameter | Traditional Bank Assessment Method | The Strategic Broker Approach |
Credit Card Limits | Assessed on total available limit (e.g. $10k limit can reduce borrowing power by $30k+). | Evaluating lenders who minimise limit-weighting metrics. |
Living Expense Auditing | Flat benchmark tool matching household size (HEM benchmarks). | Manually categorising discretionary vs. non-discretionary outgoings. |
Income Type Recognition | Rigid tracking requirements for casual, bonus, or self-employed pay. | Navigating policy variances across a panel of 40+ lenders. |
Borrowing Power FAQs
Every credit provider uses a unique assessment calculator. Lenders apply different guidelines to regular income, bonuses, overtime, and living expenses. This means your servicing capacity can vary significantly depending on the bank selected.
Yes. Lenders assess your capacity based on the total credit limit available on your cards, not the outstanding balance. Even a completely cleared card represents potential debt and can reduce your maximum loan size.
Strategic steps include reducing or closing unnecessary credit card limits, finalising outstanding personal finance facilities, and managing discretionary household outgoings strictly in the months leading up to an application.
Lenders apply standardised household benchmark costs based on the number of dependents in your care. Providing an accurate overview of your household structure helps generate a more realistic initial calculation.