"How much can I borrow?" is usually the very first question — and the honest answer is: it depends on more than your salary. I've seen two people earning exactly the same get loan offers tens of thousands of dollars apart. Here's what's really going on under the hood.
The big levers
- Income — not just how much, but the type: PAYG, self-employed, casual, overtime, bonuses and commission are all treated differently.
- Existing debts — personal loans, car loans, HECS/HELP, and especially credit card limits.
- Living expenses — lenders benchmark your spending; high discretionary spending lowers your capacity.
- Dependants — more dependants means higher assessed expenses.
- Deposit — a bigger deposit (lower LVR) can open up more lenders and better terms.
The buffer most people don't know about
Here's the big one: lenders don't assess you at your actual rate. They add an assessment buffer (commonly around 3%) and check you could still afford repayments at that higher "floor" rate. It's a safety margin in case rates rise — sensible, but it's the single biggest reason your maximum is lower than you'd expect from the advertised rate.
You're not assessed on today's rate — you're assessed on today's rate plus a buffer. That's why the bank's "maximum" feels conservative.
Why two banks give different numbers
Each lender has its own formula — how it treats overtime, casual income, rental income, HECS, and living-expense benchmarks. That's why borrowing power genuinely varies between banks, and why matching you to the right lender for your income type can meaningfully change what you can buy.
Practical ways to borrow more
- Reduce or close unused credit cards — lenders count the limit, not the balance. A $20k limit you never touch still drags your number down.
- Pay down or clear small debts — a car or personal loan repayment can free up real capacity.
- Tidy your spending for a few months before applying.
- Pick the right lender for how you earn.
Quick win
Got credit cards you rarely use? Reducing or closing them before you apply is often the fastest way to lift your borrowing power — sometimes by tens of thousands.
Get your real number
Online estimates are a starting point, but your true borrowing power depends on the lender and the detail. I'll run it across 40+ lenders and show you not just the number, but how to improve it. Try the borrowing power calculator for a first estimate, then we'll refine it together.