Australian Mortgage Serviceability Calculator

Assess your borrowing capacity based on Australian lending standards

Income Details

Primary Annual Income (Gross)

Employment Type

Secondary Annual Income (Gross)

Expenses & Commitments

Household Size

Location

Monthly Debt Repayments

Monthly Discretionary Spending

Loan Details

Desired Loan Amount

Property Value

Loan Term (Years)

Interest Rate (%)

Repayment Type

Principal & Interest

Interest Only

Credit Score

First Home Buyer?

Results

Enter your details and click "Calculate Serviceability" to see your results

Understanding Your Results

Debt-to-Income Ratio (DTI)

Your DTI compares your total debts to your gross income. Australian lenders typically prefer a DTI below 6, with lower ratios indicating better serviceability.

Loan-to-Value Ratio (LVR)

LVR shows your loan amount as a percentage of the property value. An LVR above 80% usually requires Lenders Mortgage Insurance (LMI), adding to your costs.

Serviceability Buffer

APRA requires lenders to assess your ability to repay at an interest rate at least 3% higher than current rates, ensuring you can handle future rate rises.

Household Expenditure Measure (HEM)

HEM is a benchmark for basic living expenses based on household size and location. Lenders use the higher of your declared expenses or HEM.

First Home Buyer Schemes

The Australian government offers several schemes to help first home buyers, including the First Home Guarantee (5% deposit without LMI), Regional First Home Buyer Guarantee, and state-based stamp duty concessions.