What is borrowing power?
Borrowing power, sometimes called borrowing capacity, is an estimate of how much a lender may be prepared to lend based on your household income, living expenses, existing debts and the lender's own credit policy.
How does this calculator estimate borrowing power?
This LoanFi calculator follows the same broad input structure used by major Australian lender calculators: household details, income, living expenses, other loan repayments, credit card limits and continuing housing commitments.
It does not reproduce any lender's proprietary credit model. Instead, it uses a transparent planning model so you can see how income and commitments affect the result.
Why credit card limits and existing debts matter
Lenders generally assess ongoing commitments against existing debts. Credit cards can affect serviceability even when the current balance is low because the approved limit represents available credit that could be used later.
Why is the assessment rate higher than the loan rate?
This calculator adds 3 percentage points to the entered rate as an illustration of the serviceability buffer currently required for new housing lending assessments by APRA-regulated banks.
What can change your borrowing power?
Income, dependants, living expenses, personal loans, car finance, student debt, credit limits and existing home loan commitments can all affect borrowing capacity. Different lenders may also treat overtime, bonuses, commissions and rental income differently.
Borrowing power FAQs
Is this the same as CommBank's borrowing power result?
No. The page uses a similar consumer-friendly information flow, but the calculation is LoanFi's own transparent estimate. CommBank and every other lender use their own credit policies and internal servicing rules.
Does the estimate guarantee how much I can borrow?
No. It is a planning estimate only. A lender will verify income, expenses, liabilities, credit history, property details and other eligibility requirements before making a credit decision.
Why does the calculator use a higher assessment rate?
It adds a 3 percentage point serviceability buffer to the entered rate to illustrate the prudential servicing buffer used by Australian banks.
Can LoanFi assess my borrowing power more accurately?
LoanFi can review your circumstances against lender-specific policy, including treatment of income types, credit commitments and household expenses.