How Much Can I Borrow for a Home Loan in Australia?

One of the first questions every home buyer asks is:“How much can I borrow?”

The answer isn’t simple—lenders assess each application differently. At Brampton Finance, we help clients every day understand their borrowing power and match them to the right lender. Here’s what you need to know.

✅ What Is Borrowing Power? (how much can I borrow)

Borrowing power is the maximum loan amount a lender will approve based on your financial situation. It determines the price range of properties you can realistically afford.

🏦 How Lenders Calculate Borrowing Power

Most banks and lenders use the following factors:

1. Income

   • Salary, wages, bonuses, rental income, dividends.

   • Lenders may apply “shading” (discounting) to some income types.

2. Living Expenses

   • Everyday costs (food, transport, bills).

   • Assessed using your declared budget and minimum benchmarks (Household Expenditure Measure).

3. Existing Debts & Liabilities

   • Credit cards, personal loans, car finance, HECS/HELP.

   • Even unused credit card limits reduce borrowing power.

4. Interest Rate Buffer

   • Lenders stress-test repayments at ~3% above the actual rate to ensure you can still afford repayments if rates rise.

5. Loan Term

   • A 30-year term spreads repayments more, boosting borrowing capacity compared to a 20-year loan.

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💡 Example Borrowing Scenarios

Example 1: Single Buyer

• Income: $90,000 p.a.

• No debts

• Deposit: 20%

• Borrowing Power: Approx. $500,000 – $550,000

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Example 2: Couple with One Child

• Combined Income: $150,000 p.a.

• Credit card limit: $10,000

• Living expenses: $4,000 per month

• Borrowing Power: Approx. $700,000 – $800,000

(Figures are illustrative only. Actual amounts vary by lender.)

🔎 How to Increase Your Borrowing Power

• Reduce credit card limits (even if not used).

• Pay down personal loans before applying.

• Demonstrate consistent savings history.

• Choose the right lender—different banks use different calculators, sometimes with $100k+ variation in approval amounts.

❓ FAQs About Borrowing Power

Q: Can different banks give me different loan amounts? Yes—two lenders can assess the same borrower and come back with very different maximum loan sizes.

Q: Do government schemes increase borrowing power? Not directly. They reduce deposit requirements, but your income and debts still determine how much you can borrow.

Q: Does my deposit size impact borrowing capacity? Your deposit doesn’t affect income-based borrowing power, but a larger deposit gives you more property options and reduces risk.

👩‍💼 Why Use a Mortgage Broker Like Brampton Finance?

At Brampton Finance, we:

• Compare borrowing calculators across multiple banks.

• Find lenders who assess your income more generously.

• Strategically structure debts to maximise borrowing power.

Final Word

The question “How much can I borrow?” is different for everyone. Income, debts, and lender choice all play a role—but with the right mortgage strategy, you can often borrow more than you think.

Contact Brampton Finance today for a personalised borrowing power assessment and expert guidance on your next property purchase.

Contact us: Tel 02 9389 1077 Email:info@bramptonfinance.com.au