12 Free Mortgage Calculators

Lenders calculate your borrowing power using your net income (after tax and Medicare), minus your monthly living expenses, existing debt repayments and dependant costs. They then apply an APRA assessment rate — typically your loan rate plus a 3% buffer — to determine the maximum loan you can service. Banks use the HEM benchmark to assess living expenses if your declared expenses are lower.

Each lender uses different HEM expense benchmarks, income shading factors for casual or self-employed income, treatment of rental income, and credit card limit policies. A specialist mortgage broker can identify which lenders will maximise your borrowing capacity for your specific income type.

Yes. Strategies include: consolidating or closing unused credit cards (limits count against you even if unused), paying down existing debts, reducing declared expenses to reflect actual spending, adding a co-borrower, or choosing a lender with higher income acceptance policies. A broker can model each scenario for you.

This calculator provides a general estimate using standard tax rates and an APRA 3% assessment buffer. Actual lender assessments may differ based on employment type, other liabilities, credit history and lender policy. For an accurate pre-approval figure, speak to one of our brokers — it's free and takes less than 20 minutes.