Borrowing Power Calculator

If you are thinking to Purchase your dream home, we are here for you to help with perfect home loan.

Borrowing Power Calculator


Understanding your borrowing capacity is a crucial first step in planning your property purchase. At Delight Mortgage and Finance Services, our Borrowing Power Calculator is designed to give you a quick and accurate estimate of how much you can borrow, helping you make informed decisions for your financial future.

How To Use Borrowing Power Calculator?

  1. Enter Your Income Details; Enter Joint Income if You have

  2. Enter Your Expenses

  3. Enter Credit Card Limits

  4. Check interest rate of the bank you wish to use.

  5. Add 3% to your desired interest rate as Banks buffer 3%.

  6. Enter your Desired Loan Terms in years

What Factors Impact Your Borrowing Power

1. Income

Higher Income increases your borrowing capacity. Different Banks have different method of calculating your income, so contact us and we can help you choose the one that suits your situation.

2. Existing and Potential Debts

Existing loans, personal loans, credit card debts, car loans, Hecs Debt and your potential debts can impact your Borrowing Power.

3. Living Expenses

Your cost of living impacts your borrowing power, reduce unnecessary expenses like Netflix subscriptions, using expensive cars.

4. Credit Card Limits / Hecs Debt

Your Credit card limits impact your borrowing power, so having credit card limit although you do not use can impact your borrowing power.


5. The Term (Length of the Proposed Loan)

The term of the proposed loan will impact the borrowing power as well, the longer the term the more borrowign power..


6. Interest Rate

Interest Rate plays a crucial role in your borrowing power


7. Credit Score / Credit History

Your Credit Score plays a significant role in your borrowing power, if your credit history is negative then some banks would not lend to you. Applying for a lot of credit will decrease your borrowing power.

How can you increase Your Borrowing Power


1. Increase your income / Save Larger Deposit

Boosting your income, whether through a promotion, side hustle, or rental income from an investment property, can enhance your loan eligibility.


2. Reduce Existing Debt / Credit Card Limit
Pay down or eliminate outstanding debts like personal loans, credit cards, and car loans. Lowering your financial commitments improves your debt-to-income (DTI) ratio.

3. Opt for Interest-Only Loans / Increase Loan Term

For investment properties, an interest-only loan can reduce initial repayments, increasing borrowing capacity. Increasing Loan Term will also improve borrowing power.

4.Add a Co-Borrower

Applying with a partner or co-borrower who has a stable income and good credit history can increase your combined borrowing power.

5. Correct Structure

If you are buying investment property then using the Structure like Family Trusts can help with borrowing power.


6. Consolidate Debts
Consolidating multiple debts into a single, lower-interest loan simplifies repayments and improves your financial standing.


7. Choose the Right Lender
Different lenders have varying assessment criteria. We help you find lenders with policies that align with your financial situation.

Ready to Get Started?


Your dream home is closer than you think! Contact us today for a free, no-obligation consultation and take the first step toward owning your first home.

Let us make your first home-buying experience smooth, stress-free, and truly memorable.

Contact Us

info@delightmortgage.com.au

(02) 7228 0566

Suite 101, Level 1, 276 Pitt Street, Sydney NSW 2000