Borrowing Power Calculator

Calculator Assumptions

Income and Expenses: The calculator assumes the income entered is accurate and does not factor in living expenses or existing debts, which lenders will assess separately.
Interest Rate and Loan Term: A default interest rate of 5.5% and a 30-year loan term are used unless adjusted. Changes to these inputs will affect the results.
Repayment Capacity: The calculation assumes up to 30% of your gross monthly income is allocated to loan repayments.
Indicative Only: Results are estimates and may vary based on individual lender policies and criteria.
Purpose: This tool provides general guidance only and is not a substitute for personalized financial advice or a lender’s assessment.

Frequently Asked Questions

Your borrowing capacity is influenced by several factors, including your income, existing debts, credit score, employment history, and the type of loan you are applying for. Lenders also consider your living expenses and other financial commitments.

Improving your borrowing capacity can be achieved by reducing your existing debts, increasing your income, improving your credit score, and saving for a larger down payment. Maintaining a stable employment history and minimizing unnecessary expenses can also help.

Your credit score plays a significant role in determining your borrowing capacity. A higher credit score indicates lower risk to lenders, which can increase your borrowing capacity and help you secure better loan terms.

Lenders prefer borrowers with stable and consistent employment histories, as it indicates reliable income. Self-employed individuals may need to provide additional documentation to prove their income stability, which can influence their borrowing capacity.

Yes, your borrowing capacity can change over time based on shifts in your income, expenses, credit score, and overall financial situation. Regularly reviewing your financial health and making necessary adjustments can help maintain or improve your borrowing capacity.

We will guide you through your financing journey.

Book a time with us

03 8060 4750 hello@heartfinancial.com.au

Head Office

Suite 2, Level 6
6 - 22 Gladstone Street
Moonee Ponds VIC 3039

Services

Home Loan
Investment Loan
Commercial Loan
SMSF
Car Loans
Personal Loans
Equipment Finance
Financial Wellness

Jo Attard + Co Pty Ltd trading as Heart Financial Group is a Corporate Credit Representative (416289) of Mortgage Specialists Pty Ltd.

Australian Credit Licence 387250
ABN 13 148 905 828

Your Borrowing Power Calculator

Frequently Asked Questions

What factors affect my borrowing power?

How can I improve my borrowing capacity?

How does my credit score affect my borrowing capacity?

How does my employment status influence my borrowing capacity?

Can my borrowing capacity change over time?

We will guide you through your financing journey.

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