How Much Can I Borrow: Mortgage Calculator

Use this calculator to estimate how much you might be able to borrow for a mortgage based on your income. See potential borrowing ranges and example monthly payments.

Your Details

Number of Applicants

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How to use

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About This Calculator

The Mortgage Calculator helps you estimate how much you might be able to borrow for a mortgage based on your income. It provides a range of potential borrowing amounts and shows an example of what your monthly payments might be.

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How to Use the Calculator

Step 1

Select Number of Applicants

Choose whether you're applying for a mortgage as a single applicant or jointly with another person. Joint applications can potentially allow you to borrow more as both incomes are considered.

Step 2

Enter Income Details

Enter your annual pre-tax income. If you've selected joint applicants, enter both incomes separately. This should be your gross salary before any deductions.

Step 3

Calculate and View Results

Click the "Calculate" button to see your potential borrowing range and example monthly payment. The results will show:

  • Lower Estimate: A conservative estimate of what you might be able to borrow (3.25x income)
  • Upper Estimate: A higher estimate of what you might be able to borrow (4.5x income)
  • Example Monthly Payment: An illustration of what your monthly payments might be
  • Approval Likelihood Chart: A visual representation of how likely you are to be approved for different mortgage amounts

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Understanding the Results

Borrowing Range

Mortgage lenders typically offer between 3.25 and 4.5 times your annual gross income, depending on various factors. The calculator shows this range to give you an idea of what might be possible.

Example Monthly Payment

This shows what your monthly repayments might be for a mortgage at a specific amount, interest rate, and term. The example also shows what percentage of your monthly pre-tax income this payment would represent, which is a key affordability metric that lenders consider.

Approval Likelihood Chart

This chart illustrates how your chances of mortgage approval typically decrease as the loan amount increases. Amounts at the lower end of your range are more likely to be approved, while those at the higher end may be more challenging to obtain.

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Factors Affecting Mortgage Approval

Beyond Income

While income is a key factor in determining how much you can borrow, lenders consider many other factors:

  • Credit Score: A higher credit score can improve your chances of approval and may help you secure better interest rates
  • Deposit Size: Larger deposits (as a percentage of the property value) typically allow you to borrow more
  • Existing Debts: Outstanding loans, credit card balances, and other debts can reduce the amount you can borrow
  • Employment Status: Stable, long-term employment is viewed favorably by lenders
  • Age: Your age can affect the maximum mortgage term available, which impacts affordability

Affordability Assessment

Lenders conduct detailed affordability assessments to determine how much they're willing to lend. This includes analyzing your income, expenses, and financial commitments to ensure you can comfortably afford the repayments, even if interest rates increase in the future.

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Helpful Mortgage Resources

For more detailed information about mortgage affordability and to get personalized calculations, you may find these trusted resources helpful:

Remember that these external calculators may provide different results based on their specific criteria and the information you provide. It's always best to consult with multiple sources when making important financial decisions.

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Disclaimer

The calculations are based on general guidelines used by many lenders. Actual borrowing limits will vary based on individual circumstances, lender criteria, and market conditions. Interest rates, terms, and lending criteria change frequently.

This calculator is not intended to provide financial advice. For personalized mortgage advice, please consult with a qualified mortgage advisor or financial professional.

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