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Mustang Mortgage

Calculator

Borrowing power calculator

An estimate of how much a lender may lend you, from your income, living costs and debts. Enter a rate you have been quoted; the calculator tests it the way lenders do.

Who is applying?
Dependent children
Income before tax
per year
Base salary before tax, excluding super.
per year
per week
Spending and debts
per month
If lower than $2,200 a month, we use that indicative benchmark instead.
The total limit, even if you pay it off each month.
per month
per month
per month
Child support, buy now pay later and similar.
Loans you keep on other properties.
The loan
% p.a.
Enter a rate you have been quoted. Lenders test you at a higher rate.
years
Repayments
Deposit (optional)
Deposit plus money for stamp duty and fees.
% of price
Above 80% lenders usually charge lenders mortgage insurance (LMI).

You may be able to borrow

$0

Enter your income and the interest rate you have been quoted.

Your estimated borrowing range, the rate lenders test you at and your monthly repayment appear here.

Talk this through0416 066 954

A 60-minute consultation with Sulav Adhikari, by phone or video. We check these numbers against real lender policy.

01How it works

How lenders work out what you can borrow

Every lender asks the same question: after tax, living costs and your other debts, could you still make the repayments if rates rose?

  • Income after tax

    Salary at full value; overtime, bonus and commission at 80%; rent at 80%. Tax uses the 2026-27 resident rates and the 2% Medicare levy.
  • Living costs

    The higher of what you spend and a benchmark for your household. Lenders use their own measures, often the Household Expenditure Measure (HEM).
  • Other debts

    Card limits at 3.8% a month, car and personal loan repayments, HECS-HELP, child support and any other home loans.
  • A higher test rate

    Your rate plus 3 percentage points, or 7.5% if that is higher. What is left each month sets the loan size.

02Assumptions

The living-cost benchmarks we use

Indicative figures only. They are our own simplified benchmarks, not the Household Expenditure Measure that lenders licence, and lenders' figures can be higher.

Indicative monthly living costs by household
HouseholdPer month
Single$2,200
Single, with dependants$3,000
Couple$2,950
Couple, 1 dependant$3,350
Couple, 2 dependants$3,750
Couple, 3 or more dependants$4,150
Assumptions
  • Used only when your own living-expense figure is lower.
  • Repayments on debts are not part of the benchmark; they are entered separately.
  • Income tax: 2026-27 resident rates (15% from $18,201, 30% from $45,001, 37% from $135,001, 45% from $190,001) plus the 2% Medicare levy, no offsets. Checked 26 October 2026.

How lenders look at visa holders

03Questions

Borrowing power questions

Why is my borrowing power lower than I expected?

Lenders don't test your repayments at the rate you will pay. They add a buffer (the calculator uses 3 percentage points) or use a minimum test rate, whichever is higher. They also count credit card limits rather than balances, and use a living-expense benchmark if your own figure is lower.

Do credit cards reduce how much I can borrow?

Yes, even if you pay them off every month. Lenders count a monthly repayment on the full limit, so reducing or closing cards you don't use can lift your borrowing power.

Does my visa change what I can borrow?

It can change which lenders will consider you, how much deposit they want and how they treat your income, rather than the maths here. Temporary residents also need FIRB approval and pay stamp duty surcharges in most states.

Can overtime, bonuses or rental income count?

Usually in part. Lenders often count only some of your overtime, bonus or commission, and only part of rental income, and they may want a history of it. The calculator counts 80% of overtime and bonuses and 80% of rent.

How accurate is this estimate?

It is a starting point. Each lender has its own income rules, living-expense measures and limits on debt-to-income, so two lenders can give quite different answers for the same person. At a consultation we compare the lenders on our panel for your situation.

Sources

  1. Treasury Laws Amendment (More Cost of Living Relief) Act 2025, Schedule 1 (2026-27 resident tax rates)Federal Register of Legislation · Checked
  2. Tax rates: Australian residentsAustralian Taxation Office · Checked

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