How Much Can I Borrow?

“How much can I borrow” is a very common question most home-buyers ask as you make your journey towards buying your first home, buying your next home, or refinancing your home loan, because there are  many variables and conditions which go towards how much a lender is ultimately prepared to lend.

Based on what you earn and how much you’ve got saved, our borrowing power calculator will provide you with an estimate so that you can figure out how much you might be able to borrow and what your potential monthly mortgage repayments may be.

How a Mortgage Borrowing Calculator Works


One of the most important things you need to know as a first home buyer is that the amount you might be able to borrow with one lender, will differ with another.

This is why it’s important to work out a rough estimate on how much borrowing power you might have, and then work from there.

ACF’s “how much can I borrow” calculator provides you with the right knowledge so that you can then take the next step in the home loan process and secure your dream home.

By arming yourself with this knowledge, you can quickly see what happens based on different interest rates and loan periods.

For example, the amount you might be able to borrow at one interest rate, could cost you more depending on the loan period you lock in and vice versa.

This is why it’s essential to chat with a mortgage broker before you start looking at homes to purchase. There is nothing more disappointing than finding your dream home, only to find out it’s completely outside your borrowing power.


Using a Borrowing Calculator


By using ACF’s borrowing power calculator, you can quickly determine how much you can borrow, what interest rate you’ll likely pay and an approximate monthly loan repayment amount.

Here’s what you need to do to get the most out of our mortgage borrowing power calculator:

  1. Enter in the length of the mortgage (normally at least 15-25 years)
  2. Enter in your combined salary amounts
  3. What your expenses are
  4. How many dependants you have

Once this information has been entered, the calculator will run a quick calculation and determine how much you can borrow based on all of these factors.

The #1 mistake potential home buyers make when using our borrowing calculator is entering in unrealistic figures.

The more realistic you are with the information you enter into the calculator, the better equipped you’ll be with the resulting answer.

The power of the borrowing calculator is allowing you to see how much a mortgage is going to cost you. Don’t forget to factor in all your lawyer, or conveyancing, fees, stamp duty and any mortgage insurance premiums too (use our Buying Costs Calculator for this).

Generally, it pays to be conservative with your numbers and have a little extra left over at the end of the month, than to be overextended and struggling to meet your financial commitments, wishing you’d never bought the house!

If you want to see what different repayment amounts can do to the life of your home loan, make sure you check out our extra repayments calculator too.

Remember, knowledge is power. So if you’ve been thinking, “how much can I borrow?” you now have the information you need to make an informed decision.

Using the easy-to-use ACF borrowing power calculator can help you get an informed understanding of how much you can borrow and what levers you can pull to increase your borrowing power.

Contact Australian Credit and Finance today to discuss your home loan needs and see how much money you could borrow based on your current financial circumstances.