Loan Eligibility Calculator
Our Loan Eligibility Calculator provides an estimate of how much you may be able to borrow based on your income, living expenses, existing debts, interest rate and loan term. It is designed as a quick planning tool to help you understand your borrowing capacity before applying for a home loan or personal loan.
The calculator uses a simplified affordability model to estimate your borrowing power. Actual approval amounts will vary between lenders because each bank applies its own lending policies, credit assessment criteria and serviceability calculations.
How to Use the Calculator
Using the calculator is straightforward:
- Enter your monthly income.
- Add your regular monthly living expenses.
- Enter your current monthly loan repayments or other debt commitments.
- Choose the expected interest rate.
- Select your preferred loan term.
- Click Calculate.
The calculator estimates:
- Disposable monthly income
- Estimated borrowing power
- Estimated monthly repayment
Example
Suppose you earn:
- Monthly income: AUD 8,000
- Living expenses: AUD 2,500
- Existing repayments: AUD 500
- Interest rate: 6.5%
- Loan term: 30 years
The calculator estimates your disposable income and uses a conservative repayment capacity to provide an indicative borrowing amount.
Remember, this is only an estimate. Your lender may approve a higher or lower amount.
Understanding Your Results
- Estimated Borrowing Power : This is the approximate maximum loan amount that your current financial situation may support.
- Disposable Income: This is your income remaining after regular expenses and debt repayments.
- Estimated Monthly Repayment : The repayment amount required to service the estimated loan over the selected term.
Factors That Affect Eligibility
Several factors can influence the amount you can borrow:
- Higher income generally increases borrowing power.
- Existing loans and credit card debt reduce eligibility.
- Lower living expenses improve affordability.
- Longer loan terms reduce monthly repayments but increase total interest.
- Higher interest rates reduce borrowing capacity.
Important Notes
- Results are estimates only.
- Individual lenders use different assessment criteria.
- Interest rates change over time.
- Fees, insurance and government charges are not included.
- Always confirm borrowing capacity with your chosen lender or mortgage broker.
Frequently Asked Questions
Is this calculator accurate?
It provides a realistic estimate but should not be considered a loan approval.
Does this guarantee loan approval?
No. Final approval depends on the lender’s assessment process.
Can I use it for personal loans?
Yes. The calculator can provide an indicative estimate for various loan types, although lending criteria differ.
What interest rate should I use?
Use the rate offered by your lender or compare several scenarios to understand how changing rates affect borrowing power.
Why does my bank provide a different result?
Every lender applies different serviceability rules, buffers, credit policies and income assessments.
