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Borrowing power calculator
Estimate how much you could borrow for a home loan based on your income, living costs and debts, using the 3% buffer banks test you at.
In short: On a $100,000 salary, with no debts and no kids, you can borrow roughly $460,000 at today's rates. Banks don't use a salary multiple. They check whether your income, after living costs and debts, covers repayments at about 3% above your actual rate.
How it works
How banks work it out
Take-home pay, minus the higher of your living costs or the bank's benchmark, minus other debts and a repayment on every credit card limit. What's left has to cover the new loan at your rate plus APRA's 3% buffer.
The quickest way to lift it
Here's what most people miss: an unused $10,000 credit card limit can cut your borrowing by $35,000 to $45,000. Close or lower cards you don't need, pay off small loans, and keep your spending tidy for three months before you apply.
FAQ
Common questions
How much can I borrow on a $100,000 salary?
Roughly $460,000 if you're single with no debts or dependants, at late-2026 rates. A couple earning $100,000 each could borrow over $1 million.
Why is my borrowing power lower than I expected?
Usually credit card limits, other loans, HECS-HELP, dependants or living costs above the benchmark. Rate rises also cut it by roughly 2% for every 0.25%.
What is the 3% serviceability buffer?
APRA requires banks to test that you could still afford repayments if your rate were 3 percentage points higher. APRA kept the buffer at 3% in its May 2026 review.
Do lenders all give the same answer?
No. Lenders treat bonuses, rental income, HECS and living costs differently, so results can vary by tens of thousands. That's why we compare 60+ lenders.
Home Loans & Property
Read before you decide
General information only. These calculators give estimates based on the figures you enter and published rates, and don't consider your objectives, financial situation or needs. They're not a quote, credit assessment or tax advice. Elephant Financial Pty Ltd trading as Elephant Advisory is an authorised credit representative (ACR 487962) of Yellow Brick Road Aggregation Pty Ltd, Australian Credit Licence 390261.
