A quick estimate, explained in seconds.
Based on a 6.2% average rate, refreshed regularly.
Indicative only — not a loan offer. Credit assistance by 1st Street Financial (Credit Representative 490057, under Australian Credit Licence 389328).
A lender starts with your after-tax income, takes out your living costs and any loan repayments you already have, and looks at what’s left each month. That leftover is what a new loan has to come out of.
Here’s the part that surprises people. They don’t test you at today’s rate. They add a buffer — about three percentage points — and check you could still cover the repayments if rates climbed. So a loan at 6% is assessed as if it were 9%. On a household earning $120,000 with $3,000 of monthly expenses and no other debts, that buffer alone can move the number by a hundred thousand dollars or more.
This calculator does the same sum over a 30-year term. It’s deliberately cautious, so the real number is usually a bit higher, not lower. A broker can often find a lender that takes a more generous view of your situation.
It comes down to four things: your income, your living costs, any repayments you already have, and the rate a lender tests you at. Put those in above and you'll get a rough figure in seconds. A broker sharpens it once they see the full picture.
They start with your after-tax income, take out your living expenses and any existing repayments, and see what's left to cover a loan. Then they test that surplus against a rate about 3% above the one you'd actually pay, over a 30-year term. The buffer is why the number is often lower than people expect.
No. Nothing you type is stored, sent anywhere, or checked against your credit file. The whole thing runs in your browser.
Usually the assessment buffer. Lenders don't test you at today's rate — they add about 3% on top to make sure you'd cope if rates rose. Living expenses do the rest. A broker can often find a lender whose numbers work better for your situation.
No — it's indicative only, and it doesn't account for your personal circumstances. The mortgage advice and credit assistance come from 1st Street Financial (Credit Representative 490057, under Australian Credit Licence 389328), who confirm what you can actually borrow.
Fifteen minutes with a broker turns this estimate into a real one — matched to actual lender policies, at no cost to you.
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