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How much can I borrow?
You may be a free thinker, but it still helps to have a clear view of your borrowing power before you start searching for a home. That’s why we made this handy home loan borrowing calculator.
Easy to use
Results provided instantly
Won't impact your credit score
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Our borrowing power calculator can help
Borrowing power, or borrowing capacity, refers to how much a lender could loan you to purchase an asset such as a property. Understanding your borrowing power will give you a better idea of your budget. Our home loan borrowing calculator gives homebuyers an estimate of how much they could borrow, as well as an indicative interest rate and repayment amount.
Like you, we think differently
That's why we created a free-thinking calculator to help you:
Understand your potential budget before you start house hunting.
Estimate your repayments based on the amount you wish to borrow.
See the effects different interest rates and loan periods can have.
Learn if you need to increase your borrowing power before applying.
Ready to get moving?
Wherever you are in your journey, help is here however you need it.
Contact a trusted adviser
Your local Liberty Adviser will be able to look at your lending options and help you decide the best way forward.
Get online pre-approval
Move ahead with confidence. Our online indicative pre-approval tool gives you an answer instantly. It's fast and fuss free.
Request a call back
Enter your contact details and a Liberty Adviser will be in touch to help you crunch the numbers.
Borrowing power calculator FAQs
The term ‘borrowing power’ is used to describe how much you can borrow from a lender based on your financial situation. The more borrowing power you have, the higher credit limit or loan amount you are likely to get. Having a healthy deposit, strong credit history, and a low debt-to-income ratio generally means more borrowing power. Other factors such as loan terms and interest rates can also impact your borrowing power.
Different lenders have their own formulas to calculate borrowing power, but our useful online borrowing power calculator can provide an estimate of how much you might be able to borrow. Keep in mind that factors other than your credit history or hard financial numbers can impact your borrowing power. Your lender may look at things like your number of dependents, or any resale risks associated with the type of purchase you are looking to make.
When it comes to home loans, your deposit amount can impact your borrowing power. All other things being equal, the higher your deposit amount, the more borrowing power you have. For a 30-year mortgage with a low interest rate, some lenders may want to see somewhere between a 10-20% deposit. Other lenders offer home loans requiring as little as a 5% deposit. While this may mean a slightly higher interest rate, it could help you get into your new home sooner.
As the borrowing power calculator shows, how much you can borrow depends on a range of factors including your income, assets, and current living expenses. If the borrowing power calculator did not give you the answer you were hoping for, it might be time to make some adjustments to increase your borrowing power. Speaking with a Liberty Adviser is a great first step.
If you own a property or other investment, you could increase your borrowing power by tapping into the equity instead of relying solely on a cash deposit. For homeownership, equity is the difference between the current market value of your property and what you still owe on your mortgage. There are a few ways to use the equity in your home, the most common uses include buying an investment property and renovating the existing property.