How much can I borrow?

Can I afford my dream property on my own? This easy guide shows you how to use our borrowing power calculator to work out what amount you can afford to borrow based on your income and expenses.

To get started, open our borrowing power calculator page in a new tab. Let’s start filling out the boxes. Your net income is how much money you receive after tax. You can select weekly, fortnightly or monthly depending on your pay frequency. Examples of other income would be rent from an investment property. Again, select the payment frequency.

If you have someone who is looking to take out a home loan with you, select ‘I have a partner’ and the calculator will estimate your borrowing power based on both of your incomes and expenses. Now let’s put in your expenses. These are your regular costs and outgoings. We need to take into consideration what you owe, to give you a fair and reasonable borrowing estimate.

Dependants are the number of children, or individuals who rely on you financially. If neither of these applies to you, select 0.

Annual expenses

If you know roughly how much money you spend on expenses per year, you can put the total amount in this box. If not, select ‘use average Australian annual expenses’ If you already have a loan and/or credit card, put in the amount and frequency of your repayments.

You’re nearly done! All you need for loan details is the interest rate and the loan term. If you haven’t already, check out our range of home loans to find one with the features and benefits that best suits you. Enter that loan’s interest rate into the calculator. If you click on assumptions, we’ve pre-filled some information based on our home loan data to help calculate your borrowing power. The ‘use interest rate buffer’ is there to ensure you can afford the loan in the event that interest rates increase.

Your results

You can view your results either by graph or table. You’ll see an estimate of how much your monthly home loan repayment may be. Of course, this is just an indication of how much you can afford to borrow. We’re here to help, so give us a call, visit us in person or complete our general enquiry form any time to arrange a chat.

Note: The results from the calculator should be used as an indication only. Results do not represent either quotes or pre-qualifications for a loan. The specific details of your loan will be provided to you in your loan contract. It is advised that you consult a financial adviser before taking out a loan.

Want to know more about your borrowing power? Get in touch with the team at Horizon Bank today and let us help you on your property buying journey.

Horizon Bank has a branch network spanning the NSW South Coast and Illawarra. Horizon Bank branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul, Ulladulla & Wollongong.

The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant Product Disclosure Statement and Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.