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How Much Can I Borrow?

Let's crunch the numbers

Finding out exactly how much you can borrow (and comfortably pay back) is one of the first and most important steps to take when preparing to buy your new home.

Knowing how much you can afford to borrow gives you a good budget to work with when looking at home designs and blocks of land.

With only a few details from you, our friendly finance team will crunch the numbers and tell you exactly how much you can comfortably afford to borrow.

Get started below.

Home Loan Calculator

Here’s a quick and easy way to find out how much you can borrow and the finance options are available to you.

Your fortnightly income:
Partner's fortnightly income (if you have one):
Savings you have:
Fortnightly repayments (credit card, Afterpay, car loan):

What factors affect how much I can borrow?

Your borrowing power is determined by a mix of criteria which is designed to assess your ability to meet your home loan repayments.

Below are the most common factors that banks and other lenders will consider when determining how much you can borrow

  • Income - How much income do I need to borrow for a mortgage?

    Your income is one of the first and most important criteria lenders will look at.

    Besides assessing your ability to afford loan repayments, lenders will also consider your employment security and any apparent future risks (for example, if you are self-employed).

    Generally, the more stable your monthly income is, the more likely it is that your application will be approved.

  • Assets - What are considered assets for a mortgage application?

    Assets such as cars, properties, and even shares you’ve invested in are all proof to lenders that you can save money over time and can therefore make you more attractive as a borrower.

  • Debts and living expenses - What types of debt do lenders consider for a home loan?

    When assessing your ability to repay your mortgage, lenders will look at any debts you have and the costs of maintaining your current lifestyle.

    Some of the most common debt types include:

    • Personal loans
    • Credit cards
    • Loans through AfterPay and other “Buy Now Pay Later” services
    • Any existing mortgages you may have
    • Portfolio loans, or loans that provide the funds you need to buy shares and other investments
    • Tax debt

    When it comes to living expenses, you’ll need to factor in everything from rent, groceries, and utility bills, to your day-to-day expenses when dining out, shopping, and putting fuel in the car.

  • Credit score - What credit rating do I need for a home loan?

    Your credit score is a number that is calculated based on your credit report, which includes records on money you've borrowed, loans you've applied for, and whether you pay them back on time.

    Your credit score will be between zero to 1,000 or 1,200. The higher your score is, the more reliable you will look to lenders - a score of at least 670 and above is considered good.

  • Property value - Why do lenders require independent property valuations before approving home loans?

    Sometimes the amount you think a property is worth might not match up with what it’s actually worth in the market.

    To determine a home’s true value and how much money they will lend to you, lenders may conduct a property valuation. The outcome of this may impact whether or not you are approved to borrow a certain amount of money.

  • Types of home loans - How does this affect my borrowing power?

    The amount of money you can borrow may be influenced by the term (length), interest rate, fees, repayments, and other features of the home loan you’re applying for.

    For instance, a loan with low fees and interest could mean lower repayments and therefore boost your borrowing power.

     

  • How much should I save for a house deposit?

    For most lenders, the more money you have saved to put on a home loan deposit, the more you’ll be able to borrow. Most lenders require a deposit of at least 10 - 20% of the total home loan amount.

    At Easystart, we understand not all first home buyers may not have a large amount of savings available for a deposit. Learn more about our low deposit home loans here.

     

Additional Resources