Borrowing Power Calculator

Backed by Home Loan Experts

Developed in collaboration with home loan experts, Carlisle Homes’ Borrowing Power Calculator reflects current Australian home loan conditions. With reliable calculations grounded in real-world data, this tool empowers you to make informed decisions about how much you can borrow.

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How accurate are the estimates from the Borrowing Power Calculator?

The estimates provided by our Borrowing Power Calculator reflect the details you enter, like loan amount, income, and credit history. While these estimates give a solid idea of your borrowing capacity, keep in mind that final approval depends on factors like your lender’s specific requirements, lenders mortgage insurance (LMI) if it applies, and any associated bank fees.

Can I use this calculator for investment loans?

Yes, this calculator works for both residential and investment loans. However, additional considerations, such as property expenses and interest repayments, may impact your borrowing power if you're looking at an investment property. This tool offers a great starting point! We also have an investment property calculator you can use.

What factors are considered when calculating borrowing power?

The calculator looks at your annual income, monthly expenses, any existing credit accounts, loan amount, and the loan term. It also accounts for your ability to handle regular home loan repayments and potential costs like lender mortgage insurance.

Can I adjust the loan term for different repayment scenarios?

Yes! Adjusting the loan term allows you to see how different repayment plans impact your borrowing power. For example, a longer loan term may reduce your monthly repayments, while a shorter term could increase them, helping you pay off the loan faster.

Does the Borrowing Power Calculator include interest-only loans?

Yes, the calculator considers both principal and interest and interest-only loans. Keep in mind that interest-only repayments can lower your monthly costs initially, but they won’t reduce the principal loan balance until after the interest-only period ends.

Does having a guarantor increase borrowing power?

Absolutely! Having a guarantor—often a close family member—who provides their property equity as security can significantly boost your borrowing power. This additional security lowers the lender’s risk, which may allow you to borrow more and even help you avoid lenders mortgage insurance (LMI) if you have less than the usual deposit.

Does HECS debt affect borrowing power?

Yes, HECS debt (Higher Education Contribution Scheme) can impact your borrowing power. Although HECS repayments are income-contingent, lenders still factor them into your overall debt obligations. As part of your income goes toward HECS, your available funds for loan repayments may be slightly reduced. Read more about how to overcome borrowing challenges.  

How to increase borrowing power?

To increase your borrowing power, consider these strategies:

1. Reduce existing debt: Paying off personal loans, credit card debt or car loans can free up more of your income for mortgage repayments.
2. Increase your deposit: A larger deposit reduces the loan-to-value ratio (LVR), making you a lower risk for lenders.
3. Improve your credit score: A higher credit score increases your attractiveness to lenders, potentially leading to better loan terms and increased borrowing capacity.
4. Increase your income: Lenders assess your ability to repay based on your income, so a higher income can improve your borrowing power.
5. Reduce living expenses: Lenders evaluate your financial commitments, so reducing your ongoing expenses can increase your available income for loan repayments.

Does equity increase borrowing power?

Yes, building equity in an existing property can increase your borrowing power. Equity—the difference between your property’s market value and mortgage balance—is an additional security for lenders. This may enable you to borrow more for a new property, renovations, or other investments. Check out our mortgage calculator for more information.