This calculator is designed to give you an estimate of how much money you can borrow from a lender. Note that the borrowing power is calculated on a custom model which can differ from lender to lender. The purpose of this calculator is to merely give an indication of what a lender could offer you, based on some of your basic incomes and financial commitments. Youâ€™ll only know how much you can borrow for certain when you apply and receive conditional approval for a maximum borrowing amount on a loan.

- It does not take into account any possible fees i.e. up-front fees or ongoing fees.
- Interest rate does not change over the loan term.
- Interest is calculated by compounding on the same repayment frequency selected, i.e. weekly, fortnightly, monthly. In practice, interest compounding frequency may not be the same as repayment frequency.
- It is assumed that a year consists 26 fortnights or 52 weeks which is counted as 364 days rather than 365 or 366 days.
- No rounding is done throughout calculation whereas repayments are rounded to at least the nearer cent in practice.
- Buffer or Extra Interest Rate: In order to avoid the risk of interest increasing, many lenders apply a buffer / extra interest rate to calculate borrowing power but the repayments and total interests payable are still calculated without buffer rate.
- The borrowing Power total is calculated at the greater of the Interest rate input + a buffer of 3% or a fixed floor rate of 5.75%
- The greater of the estimated Living Expenses input, or a default Household Expenditure Measure amount which is implemented in many Lenders serviceability calculations, is used to calculate the Borrowing Power amount.