Why is the assessment rate higher than my rate?

APRA requires banks to test repayments at the higher of your rate plus 3% or a floor rate — so the loan stays serviceable if rates rise.

Does my partner's income count?

Joint applications combine incomes and expenses. This estimator models one income stream — add a partner's net income to the surplus manually for a rough joint figure.

How accurate is the net income figure?

It uses the 2024–25 resident tax brackets plus the Medicare levy. HELP repayments, salary sacrifice, and non-salary income shift the real number — see the salary calculator for a precise take-home estimate.

Borrowing power calculator

How much could a lender offer?

Enter income, living expenses, existing debts, card limits, and your deposit. The estimator nets your income, applies the 3% assessment buffer lenders use, and converts the surplus into a maximum loan and property price.

Interactive borrowing power estimator

A lender-style serviceability check: after-tax income minus living expenses, debts, and card-limit loadings — then assessed at a 3% rate buffer, the way APRA expects banks to.

Your position

Gross annual income (AUD)

Monthly living expenses ($)

Lenders compare this against HEM benchmarks — understating it inflates the result.

Other monthly repayments ($)

Personal loans, car loans, BNPL, HECS-indexed commitments.

Total credit card limits ($)

Assessed at ~3.8%/month of the limit, even if you pay in full.

Deposit available ($)

Loan rate %

Term (years)

Estimated maximum property price~80% LVR before costs

$443,835.2357212842

Loan $353,835 + deposit $90,000 — before stamp duty and purchase costs

Monthly repayment

$2,121/mo

at 6.0% actual rate

Serviceability surplus

$2,847/mo

assessed at 9%

Net monthly income

$7,001/mo

after income tax + Medicare

Why card limits hurt even at $0 balance

Lenders assume your $8,000 card limit is fully drawn and assess ~3.8% of it per month — $304/mo of borrowing capacity here. Lowering a limit by $10,000 typically adds roughly $60–70k of borrowing power at current rates. This estimate ignores HEM floors, lender-specific loadings, and stamp duty — treat it as a planning range, then confirm with a broker.

Estimate only — each lender's serviceability model differs. Excludes stamp duty, LMI, and purchase costs.

After-tax income minus expenses, debts, and card loadings

Assessed at rate + 3% APRA serviceability buffer

Shows the monthly repayment at the actual rate

Serviceability is the real ceiling

Your deposit decides what you can bid on; serviceability decides what a lender will lend. Banks assess repayments at your rate plus a 3% buffer, then require a surplus after living expenses (floored at the HEM benchmark), existing debts, and card limits. That is why two households on the same salary can be offered very different amounts.

Card limits count, not card balances

Lenders assess credit cards at roughly 3.8% of the limit per month — whether or not you use them. A $20,000 unused limit can cost around $150,000 of borrowing power. Trimming limits before applying is one of the cheapest ways to lift the ceiling.

What this estimate leaves out

Lender-specific HEM floors, dependant loadings, HELP repayment commitments, LMI pricing above 80% LVR, and stamp duty all move the real figure. Use this as a planning range and get a broker or lender to run their actual serviceability model before you shop.

Frequently asked questions

Why is the assessment rate higher than my rate?: APRA requires banks to test repayments at the higher of your rate plus 3% or a floor rate — so the loan stays serviceable if rates rise.
Does my partner's income count?: Joint applications combine incomes and expenses. This estimator models one income stream — add a partner's net income to the surplus manually for a rough joint figure.
How accurate is the net income figure?: It uses the 2024–25 resident tax brackets plus the Medicare levy. HELP repayments, salary sacrifice, and non-salary income shift the real number — see the salary calculator for a precise take-home estimate.

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