What might a lender lend — and why so much less than “income × 5”?
An indicative estimate that makes the invisible levers legible: the APRA serviceability buffer lenders assess you against, the living-expense floor they apply, and where the result sits against the high-debt rationing band. An estimate lenders assess differently — not a pre-approval.
Educational tool. Not financial advice.
Which question are you answering?
Your net (after-tax) annual income
Income available to service a loan, after tax — for a couple applying together, your combined net income.
$
Your declared annual living expenses
What you actually spend in a year. Lenders apply the higher of this and an indicative living-expense floor (HEM) — so declaring less than the floor does not lift the estimate.
$
Existing annual debt commitments
Annual repayments on other loans, plus the notional repayment lenders count on your credit-card limits. An adjustable assumption, not a precise figure.
$
Are you a couple applying together?
Yes — a couple. This raises the indicative living-expense floor used.
How many dependants?
Feeds the indicative living-expense floor (HEM) when you don't set your own below.
0
Adjust the living-expense floor (HEM) — optional
HEM is an indicative estimate based on published methodology, not a precise figure (the real tables are licensed and not public). Leave blank to use our approximation, or set your own annual figure.
$
The interest rate you'd pay (%)
As a percentage, e.g. 6.1. Lenders assess your repayments at this rate plus the APRA serviceability buffer.
%
Loan term (years)
The term used for the notional repayment — typically 25 or 30 years.