How much can I borrow?
This calculator estimates your home loan borrowing power the way lenders actually assess it in your country — select from Australia, the US, UK, Germany, Singapore, Netherlands, Ireland, France, Canada, New Zealand, South Africa, Switzerland or India above. Each country uses different rules: Australia and Germany test your income after tax against a buffered interest rate, the UK and Ireland cap borrowing at a multiple of your income, the US uses the 28/36 debt-to-income rule, Singapore applies the MAS-mandated TDSR/MSR ratios, and Canada and New Zealand apply their own government-mandated stress tests.
The serviceability method explained
- Australia — net income tested against your rate plus a ~3% buffer, with a HEM-style living expense floor.
- USA — the 28/36 rule: housing costs capped at 28% of gross income, total debt at 36%.
- UK — an income multiple (4 to 5.5x gross income) plus an FCA-mandated stress test at your rate plus ~3 percentage points.
- Germany — your mortgage payment capped at around 35% of net income.
- Singapore — MAS's TDSR (55% of gross income) and MSR (30%, HDB/EC only) at a mandatory 4% stress rate.
- Netherlands, Ireland, France, Canada, New Zealand — each uses its own government-set income ratio, loan-to-income multiple, or debt-to-income cap with country-specific stress testing.
- South Africa — the "30% rule": bond repayment capped at 30% of gross income, with a National Credit Act affordability assessment and a ~40% total debt-to-income cap.
- Switzerland — the FINMA/SBA affordability rule: imputed housing costs (tested at a notional ~5% interest rate, not your actual rate, plus ~1% maintenance) capped at 33% of gross income.
- India — FOIR (Fixed Obligation to Income Ratio): total EMIs capped at ~50% of net income, cross-checked against an income-multiple rule (~60x monthly income).
Why your number differs between lenders
Every lender has its own expense benchmarks, buffers, and credit policies, so no two give the same figure, even within the same country. This is a realistic estimate using each country's standard regulatory approach, not a pre-approval. Always confirm your actual borrowing capacity with a lender or mortgage broker.
Assumptions & What's Not Included
This is an estimate of borrowing capacity, not a loan approval. It makes several simplifying assumptions:
- Income & expense based — the estimate uses the income and expenses you enter against the selected country's lending rules. It doesn't include a full credit assessment, existing debts you haven't entered, credit-score checks, or lender-specific policies.
- Serviceability buffer applied — where a country's regulator requires an interest-rate buffer or stress test (e.g. an added margin on the assessment rate), it's applied, but real lenders vary their buffers and floor rates.
- Net vs gross income — the tool labels income as net (after-tax) for consistency; some real lenders assess on gross income, so their figure may differ.
- Not included — genuine savings history, deposit source, Lenders Mortgage Insurance thresholds, HEM benchmark nuances, guarantor arrangements, and non-standard income (bonuses, overtime, self-employment) are not modelled.
- Single snapshot — it assumes your income and expenses stay constant; it doesn't project future rate rises beyond the buffer or life changes.
Use this as a starting-point guide only. A licensed mortgage broker or lender will give you an accurate, assessed borrowing figure.
Worked example
As an illustration: a single applicant in Australia earning $90,000 net, with $2,500 a month of living expenses, no other loans, a $5,000 credit-card limit, assessed at 6.5% over 30 years.
| Applicant | Single, Australia |
| Net income | $90,000 / year |
| Living expenses | $2,500 / month |
| Other debts | None ($5,000 card limit) |
| Assessment rate / term | 6.5% / 30 years |
| Estimated borrowing power | Several hundred thousand dollars |
What it tells you: The result is an estimate of how much a lender might let you borrow, using your country’s serviceability method — it hinges on your surplus income after expenses and buffered repayments. Because lenders apply their own expense benchmarks and buffers, treat it as a guide and confirm with a broker. Enter your details for your own figure.
Frequently Asked Questions
How do banks calculate how much I can borrow?
It depends on the country. Most apply some combination of an income-based cap (a multiple of income, or a percentage-of-income ratio) and an interest rate stress test, to confirm you could still afford repayments if rates rose. Select your country above to see the exact method and ratios used.
Why are credit cards assessed on the limit, not the balance?
Most lenders assume you could draw the full limit at any time, so they treat a percentage of your total credit card limit (commonly 3–4% per month) as a commitment, even if you pay the card off in full. Reducing or closing unused cards can increase your borrowing power.
Does rental income count toward borrowing power?
Yes, but usually not at full value. Most countries' lenders count only 70 to 80 percent of gross rental income to allow for vacancy, management fees and maintenance. This calculator applies an 80% shade.
Why do different countries use such different rules?
Each country's financial regulator sets its own macroprudential lending rules based on local housing markets, household debt levels, and financial stability priorities. Singapore and Canada use mandated stress-test rates; the UK and Ireland use income multiples; Australia and Germany use income-ratio approaches. None is inherently more conservative — they reflect different regulatory philosophies.
Is this calculator private? Do you store my data?
Yes, it is completely private. Every calculation runs locally in your browser, so the figures you enter are never sent to a server, never stored, and never shared. There are no accounts and no sign-up.
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