Borrowing power calculator
An estimate of what a typical lender might lend, from your income, the rent from a property you own and your debts, under the test lenders run, with each step of the working.
How do lenders test what you can repay?
A lender asks whether you would still have money left each month if rates rose. It takes your pay after tax and any HELP repayment, adds part of your rent, and takes off your living costs and your other debts. Every loan is tested at its rate plus a buffer of at least 3%. What is left must cover the new loan's repayments at its rate plus the buffer.
| Part | How it is counted |
|---|---|
| Rent | 80% of it, which you can change |
| Living costs | Yours, or a typical lender's minimum if that is higher, which you can switch off |
| Loans you have | At their rate plus the buffer, over the years left |
| Credit cards | 3.8% of the limit a month, whatever is owed, which you can change |
A lender also checks your spending, uses a living cost for where you live, sets its own lowest test rate and limits large loans for your income.
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