One of the most common questions we get from Adelaide buyers is simple: how much can I actually borrow? The answer is more complex than most people expect - and understanding it can make a real difference to your property search.
Lenders assess your borrowing capacity using a serviceability test - they calculate whether you can afford the repayments at a buffer rate (typically 3% above the loan rate). That means a 6% loan rate is tested at 9%. This is the main lever that determines how much you can borrow.
Beyond income, lenders look at your living expenses, existing debts, credit card limits, number of dependants, and employment stability. Two people with identical incomes can have very different borrowing capacities depending on their circumstances.
The key factors lenders assess are:
This is where working with a broker makes a real difference. Different lenders apply different expense benchmarks, treat different income types differently, and assess your application against their own specific policies. The same application can result in a borrowing capacity that varies by $100,000 or more between lenders.
We know which lenders will maximise your capacity for your specific situation - and which lenders are the best fit for your income type, deposit size, and goals.
Use our borrowing power calculator for a quick estimate, or book a chat and we'll give you your precise borrowing capacity across the lenders most likely to suit your situation - with no impact on your credit file.
Lenders do not simply look at your income and multiply by a number. They assess your net income after tax, subtract your committed living expenses and existing debt repayments, apply a stress-test buffer of 3% above the actual loan rate, and then calculate the maximum loan that the remaining surplus can service.
The result varies significantly between lenders because each uses different assumptions for living expenses, different treatments of various income types, and different policies for specific situations like self-employment, multiple properties, or HECS debt.
Understanding what drives the calculation tells you what to focus on before applying. The biggest levers are reducing existing debt, closing unused credit facilities, and choosing the right lender for your specific income profile.
The difference in borrowing capacity between lenders for the same application can be $100,000 or more. Lendology compares your capacity across 60+ lenders and identifies the one that will approve the most - at a competitive rate.
HECS-HELP debt reduces your borrowing capacity because your compulsory repayments are assessed as a committed expense. The repayment rate increases with income - at $70,000 taxable income the repayment is 2.5% of income, rising to 10% above $141,848.
On a $70,000 salary a HECS repayment of approximately $1,750 per year reduces borrowing capacity by approximately $25,000 to $35,000 depending on the lender. At higher income levels the impact is proportionally larger. Lendology factors your HECS balance into the capacity calculation and identifies lenders with the most favourable HECS treatment.
On a $100,000 salary with no dependants and minimal existing debt, most lenders will approve between $500,000 and $650,000. The exact figure depends on your living expenses, any existing debts, the lender, and current interest rates. Book a chat for your precise figure.
Yes. Applying jointly with a partner increases combined income and therefore combined borrowing capacity - though combined expenses and debts are also included. For most couples, applying jointly increases capacity significantly compared to applying individually.
Yes - sometimes significantly more. Lenders assess income and expenses differently, and some are more generous for specific situations. Lendology compares your capacity across 60+ lenders to find the one that approves the most at a competitive rate.
It depends on the lender and the consistency of the income. Most lenders require overtime and bonus income to be demonstrated over two years and will assess it at 80% to 100% of the average. Lendology identifies lenders with the most favourable treatment for your specific income mix.