Home loan borrowing power calculator

Use our comprehensive calculator to get a more detailed estimate of your borrowing power.

Average customer rating: 4.3/5
Written by James Hurwood
Reviewed by Stephen Zeller
Updated 9 May 2024

How does borrowing power work?

Confused by the concept of borrowing power? Luckily for you, Selling Houses Australia host, Andrew Winter, is here to help explain.
Andrew Winter
Home Loans

Expert tips for understanding borrowing power

As General Manager of Money at Compare the Market, Stephen Zeller knows how important a firm understanding of one’s borrowing power is when house-hunting and trying to take out a home loan, so he’s passionate about making sure consumers know what their borrowing power is, and how borrowing power works. With that in mind, he has some borrowing power-related tips for you:

Stephen Zeller
General Manager – Money

Keep your credit limits in mind

Even though you may pay down your credit card balance each month, lenders still consider your credit card limits and may assume it can be drawn to its limit the day after the loan settles. When applying for home loan finance, we can review your circumstances based on lower or no credit limits, which can significantly boost your borrowing power.

Remember your HECS debts

Don’t forget about student HELP (HECS) debts; these will be factored in when a lender is reviewing your borrowing power, and are one of the most common liabilities that are forgotten about. If you only have a minimal amount owing, you may want to consider paying this out prior to settlement, as it could positively affect your borrowing power.

We’re here to help

There are many twists and turns when working out someone’s borrowing power, so you may want to speak with our Home Loan Specialists to help run through your circumstances in depth. Keep in mind that while it can be great finding out what your potential borrowing power is, you need to ask yourself if you would be comfortable having this amount of debt and whether you can reasonably make these repayments.

Ready to look for a better deal? It’s easy to compare and apply with us!

Borrowing power explained

What is home loan borrowing power?

How different factors affect home loan borrowing power

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How can I increase my home loan borrowing power?

How do interest rates affect my borrowing power?

Meet our home loans expert, Stephen Zeller

Stephen Zeller
General Manager – Money

Stephen has more than 30 years of experience in the financial services industry and holds a Certificate IV in Finance and Mortgage Broking. He’s also a member of both the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) and the Mortgage and Finance Association of Australia (MFAA).

Stephen leads our team of Home Loan Specialists, and reviews and contributes to Compare the Market’s banking-relating content to ensure it’s as helpful and empowering as possible for our readers.

  1. APRA. APRA increases banks’ loan serviceability expectations to counter rising risks in home lending. 2023.