Home loans borrowing calculator

What’s your borrowing power for a home loan? Before you set your heart on that waterfront mansion, use our borrowing calculator to crunch the numbers and work out how much you’ll be able to borrow - and pay back!

Home loan comparisons on Mozo - last updated 24 May 2022

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    Smart Booster Home Loan

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    2.10% p.a.variable for 24 months and then 2.50% p.a. variable
    2.46% p.a.

    New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

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    Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    1.89% p.a. variable
    1.90% p.a.

    Competitive variable rate. Borrowers choose their repayment schedule (weekly, fortnightly or monthly) Make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

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    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    2.14% p.a. variable
    2.14% p.a.

    Rates have moved in line with RBA. Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.

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    Basic Home Loan

    Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    2.39% p.a. variable
    2.39% p.a.

    No application or account management fees. Flexibility to split your loan and set different repayment types. Fee free withdrawals of your savings.

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    Mozo Experts Choice 2022
    Variable Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    2.24% p.a. variable
    2.24% p.a.

    Purchase and Refinance. No upfront or ongoing fees. Fast digital application. 100% offset sub account with no account or redraw fees. Comes with a Visa debit card, mobile App, and digital wallet. 20% deposit or equity required. Mozo Experts Choice winner for Best New Home Loan and Low Cost Home Loan 2022. 18 years and over.

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    Mozo Experts Choice 2022
    Variable Rate Home Loan

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    2.09% p.a. variable
    1.99% p.a.

    $5000 refinance cashback. Owner-occupier refinancers only living in NSW/VIC/SA metro and inner regional areas. Receive up to an additional 0.15% off your rate as you pay off the loan. Receive bonus payments up to $2,500. T&Cs apply.

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    Momentum Home Loan

    Owner Occupier, Principal & Interest, LVR <60%, Refinance Only

    interest rate
    comparison rate
    2.24% p.a. variable
    2.25% p.a.

    A great option for refinancers looking for an alternative, the G &C Mutual Bank’s Momentum Home Loan offers a competitively low rate for a fixed period. It features a 100% offset account in addition to unlimited extra repayments.

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    Discounted Variable Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    2.94% p.a. variable
    3.35% p.a.

    Enjoy a great low rate with no ongoing fees. Ability to split your loan between fixed and variable. 100% offset account. Refinance and get up to $3,000 cashback. LVR ≤90%. $2,000 cashback for loans ≥ $250k, plus bonus $1,000 for loans ≥ $500k. Limited time offer extended, T&Cs apply.

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    Back to Basics Special

    LVR<70%, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    2.19% p.a. variable
    2.20% p.a.

    No monthly account keeping fee, no ongoing annual fee and no loan establishment fee on new lending of $150,000 or more.

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    Offset Home Loan

    Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    2.39% p.a. variable
    2.67% p.a.

    Flexible loan structure. Ability to open up to 10 offset accounts per loan account. Includes a Debit Mastercard and transaction account for everyday transactions. All ATM fees in Australia are instantly refunded.

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    Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    4.49% p.a.
    fixed 2 years
    2.83% p.a.

    Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.

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    Mozo Experts Choice 2022
    No Frills Home Loan

    Owner Occupier, Principal & Interest, LVR <70%

    interest rate
    comparison rate
    2.24% p.a. variable
    2.24% p.a.

    Earn 200,000 bonus Qantas Points with the Qudos Bank Qantas Points Home Loan when you apply between 01/04/22-30/06/22 and settle by 30/09/22. Be rewarded year after year with Qantas Points each month for the life of your loan. Save with $0 bank fees for established homes. Fee-free redraw. Free unlimited extra repayments. Multiple offset accounts available.

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    Discounted Home Value Loan

    Owner Occupier, Principal & Interest, LVR <70%

    interest rate
    comparison rate
    2.52% p.a. variable
    2.53% p.a.

    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Receive $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 31 May 2022 and settle by 31 July 2022.

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    Choice Home Loan

    Owner Occupier, Principal & Interest and Interest Only

    interest rate
    comparison rate
    2.74% p.a. variable
    2.75% p.a.

    Competitive variable interest rate. No establishment or ongoing monthly fees to pay. Optional offset account available for 0.10%. Unlimited redraws. Extra repayments allowed. No minimum loan amount.

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    Own Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    2.14% p.a. variable
    2.43% p.a.

    Competitive variable rates. Free extra repayments and redraws. No Lender’s Mortgage Insurance. Multiple offset accounts available. Fast digital application. 40% deposit required.

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    Economy Variable Home Loan

    Owner Occupier, Principal & Interest, <70% LVR, $150,000+

    interest rate
    comparison rate
    2.38% p.a. variable
    2.55% p.a.

    An ongoing low variable interest rate with free redraw, flexible repayment options and one free valuation. Discounted Economy variable rate available for owner occupier lending with max LVR of 70%. Apply by 30 June 2022, settle by 30 September 2022, and receive $3,000 cashback (T&Cs apply).

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    Smart Booster Home Loan

    1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    2.24% p.a.variable for 12 months and then 2.73% p.a. variable
    2.72% p.a.

    A super low introductory rate home loan with no monthly or ongoing fees. loans.com.au has some of the fastest settlement times on the market. They can meet 30-day settlement timeline so you can start saving thousands, as soon as possible! Mozo award-winning online lender, friendly and local Australian based team.

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    Evaporate Variable Home Loan

    60-70% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    2.19% p.a. variable
    2.16% p.a.

    Rates have moved in line with RBA. Fast online application with no fees. Free extra repayments and redraw facility. Min 20% deposit.

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    Investor Bundle Variable Home Loan

    Investment, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    2.15% p.a. variable
    2.18% p.a.

    Yard’s Investor Bundle home loan is packed with all features – unlimited additional repayments, free redraw, optional 100% offset account. Enjoy a simple online application. Special investor rate applies to combined home loan and investor bundles only (conditions apply).

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    Discounted Home Value Loan

    Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    2.62% p.a. variable
    2.63% p.a.

    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Receive $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 31 May 2022 and settle by 31 July 2022.

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    Celebrate Variable Home Loan

    <60% LVR, Investment, Principal & Interest

    interest rate
    comparison rate
    2.44% p.a. variable
    2.44% p.a.

    Rates have moved in line with RBA. Enjoy zero fees and a speedy online application process. Free extra repayments and redraw facility. Flexible loan repayments. Minimum 20% deposit required.

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Calculating your home loan borrowing power

Figuring out roughly what a bank or credit union will lend you for a home loan is the first step in the home buying process. Afterall, you don’t want to find the perfect home only to find out that you won’t be able to get the money to fund purchasing it. To help you get an estimate of how much you’ll be able to borrow plug a few of your personal finance facts into our home loan borrowing calculator above. It will give you a good idea of how much you’re able to borrow and successfully pay back on your home loan each month based on your budget so that when it comes time to shortlist the properties in your desired Aussie neighbourhood you have a good idea that you’ll be approved for a loan.

What information will goes into determining how much I can borrow?

All banks and home lenders will want to make sure that if they loan you money for a new home that you’ll be able to pay it back. Mortgage stress is a real issue and to make sure that you don’t fall victim to this, you’ll want to be really upfront about your income and your liabilities. The main factors that determine your borrowing power are:

Your income

Your income will be an important factor when determining your home loan borrowing muscle. If you’re earning a single income you might not have access to as much money as when you’re buying as part of a couple.

Your living expenses

Living expenses like your grocery and energy bills are also an important part of the home loan borrowing power formula. The more streamlined you can make these, the more you’ll be able to manage in terms of monthly mortgage repayments. While we give you the option to use default living expenses, we recommend entering your own customised figures so that you will get a more realistic idea of how much you’ll be able to borrow on your home loan.

Other monthly repayments

Do you have other monthly repayments like a car or personal loan? These will also impact your borrowing power for a home loan so it’s a good idea to try and get these as low as possible. And if you have any debts like a credit card bill, make sure that you also include this. 

Your preferred loan term

While the standard mortgage term is 25 years, most lenders will have mortgages up to 30 years. The advantage of opting for a shorter home loan term is that you incur less interest over the life of the loan, but this could mean your monthly repayments are a little more steep.

Why do banks factor in a rate rise in their calculations?

The reality is that over a 30 year mortgage there will be periods when the interest rate on your home loan changes and to protect themselves, banks want to know that if rates do go up, you will still be able to cover your monthly mortgage repayments. It’s also good for your peace of mind to know that if rates jump you will be able to pay back your loan without too much difficulty or at least have an idea of how much extra you will need to find in your budget so that you can cut back on other areas if needed. So have a play around with the rate change functionality of our calculator to get a sense of how much you’d need if there was a rate rise.

How much should I set aside for a deposit?

In addition to the amount your home loan lender will let you borrow, you’ll also need a home deposit saved up to get your foot in the door of your first property. In Australia, it’s recommended that you have a 20% deposit, but some home loan providers will let you borrow with less as long as you pay Lenders Mortgage Insurance

Other helpful home loan borrowing tips

Keep an eye on your LVR

LVR stands for loan to value ratio, which is all about how much you’ve saved up for your home loan deposit. Generally, the lower your LVR, the better you’re borrowing power will be. In Australia, the preferred LVR is anything less than 80% - which means you should be aiming for a deposit of 20% or more of the value of your dream home. If that seems like too much of a hurdle, there are lenders who offer low deposit home loans, for LVRs up to 95%. But keep in mind that if you opt for one of these offers, you’ll have to take into account the cost of lenders mortgage insurance.

Factor repayments into your budget

The more you borrow, the bigger your repayments will be! So even if you qualify for a whopping home loan, ask yourself if you really need it and if the repayments are in line with your monthly budget and lifestyle. A good rule of thumb is to compare the repayment amount with your current rent. If they’re similar figures, you should be able to handle the repayments pretty easily. But remember to plan for the possibility of a rate rise, as shown on the calculator - it’s best to have a financial buffer, just in case.

Plan for stamp duty

Another big cost to consider when looking for a home loan is stamp duty. The government can sometimes charge you in the tens of thousands of dollars, which might just about break your budget. If you - or your wallet - don’t like the idea of paying it as a lump sum, you can also opt to add it to the price of your monthly repayments. Find out how much you might be up for in stamp duty with our handy calculator.

Review your credit report

To boost your borrowing power before you apply for a home loan, get a copy of your credit report and go over it with a fine tooth comb. Any mistakes or incorrect details could be stopping you from being approved for a loan but keep in mind that, under the new comprehensive credit reporting legislation lenders will also be looking at your positive credit repayments.

Pay off debts

Got a credit card debt hanging over you? It could be damaging your chances of getting a home loan. Check out a balance transfer deal and blast credit card debt to get back on track toward a home loan.

Start saving!

Having a regular savings plan will make you look reliable and money savvy. Plus, setting up good savings habits will help you build up a home loan deposit and lower your LVR which will get you a better deal on your home loan.

For more helpful information on how to get your foot in the door of your dream home or fully finance your next investment property, check out our comprehensive range of home loan guides.