Home Loan Affordability Calculator Australia
Understanding your home loan affordability is crucial when buying a property in Australia. Our home loan affordability calculator helps you determine how much you can borrow and afford to repay.
- Enter your annual gross income.
- Enter the desired loan amount.
- Enter the loan term in years.
- Enter the interest rate.
- Click ‘Calculate’ to see your results.
The calculator uses the following formula to estimate your borrowing power:
Borrowing Power = (Income – Expenses) / (Interest Rate / (1 – (1 + Interest Rate)^-Loan Term))
| Income | Loan Amount | Loan Term | Interest Rate | Borrowing Power |
|---|---|---|---|---|
| $100,000 | $500,000 | 30 | 4.5 | $625,000 |
| Interest Rate | Average Loan Size | Average Loan Term |
|---|---|---|
| 4.5% | $500,000 | 30 years |
- Consider your living expenses when determining how much you can afford to borrow.
- Factor in additional costs such as stamp duty, legal fees, and ongoing maintenance.
- Regularly review and update your calculator inputs to reflect changes in your financial situation.
What is the maximum I can borrow?
Lenders typically allow you to borrow up to 90% of the property value, but this can vary.
For more information, refer to the MoneySmart guide to home loans.