Borrowing calculator assumptions

The information provided by this borrowing power calculator should be treated as a guide only, and not be relied on as true indication of your home loan repayments, or a quote or indication of pre-qualification for any home loan product.

The Aussie home loan borrowing power calculator calculates the potential amount you may be able to borrow for a home loan, with respect to a number of factors about the borrower's personal financial situation.

Key calculator assumptions

When you have selected “Calculate expenses for me”:

  • An estimate of basic expenses is applied, based on a national average of the Household Expenditure Measure (HEM). This estimate takes into account factors such as the application type (single or joint) and the number of dependents that the applicant(s) support. This amount is used as guidance only in helping you assess your potential borrowing capacity. Your actual expenses may differ from this approximation.

When you have chosen to list your expenses:

  • The calculator will use the higher of your declared expenses or the applicable national average HEM value for the purpose of assessing your potential borrowing capacity.

Before/after tax income - The calculator applies the basic applicable tax rate to 'Before tax' income entered for the current financial year. This does not take into account additional commitments you may have such as HECS-HELP or other applicable levies, for example.

Length of month - It is assumed that each month is of equal length.

Weeks and fortnights in a year - 52 and 26, respectively.

Rounding - Calculated dollar amounts are rounded to the nearest whole dollar.

In practice, actual home loan calculations may differ based on how a lender interprets these factors in regards to any given loan. These assumptions allow us to help you determine estimated borrowing power amounts that will help with your research. Before applying for a loan, your actual monthly expenditure and other factors will have to be taken into account in calculating your actual borrowing capacity.