Mornington Peninsula Mortgage Broker
Borrowing capacity calculator you control
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Most borrowing calculators hide their assumptions and hand you a single confident number. This one does the opposite. Every rate, margin and allowance it uses is a field you set, the working is shown line by line, and nothing you type leaves your browser.
Your numbers
Enter monthly figures after tax. Leave a field at zero if it does not apply to you.
What lands in your account each month after tax, from salary, wages or drawings.
Leave at zero if you are applying on your own.
Rent received, family payments or other regular income, after tax.
Your own figure, taken from recent bank statements. A lender will form its own view of your household expenses and that view may be higher than the figure you enter here.
Children and others who depend on your income. This only changes the estimate if you also set a monthly allowance per dependant in the assumptions, because the cost of a dependant is yours to state, not ours to guess.
Car, personal, business and other loan repayments you will still be making.
The total limit available to you, not the balance you happen to carry.
Set aside on top of your expenses, before any repayment is worked out. Leave at zero if you would rather not set one.
Cash savings plus any equity you can use. Used only to show an indicative purchase figure.
Assumptions you control
The starting figures below are neutral placeholders that make the calculator usable. They are not rates we offer, rates we quote, or rates we have observed in the market. Set each one to the figure that applies to your situation.
Your assumption, in percent per year. It is not a quote, not a market average and not a rate we have available. Ask us or your lender what rate is realistic for your circumstances, then test it here.
Many people test their numbers at a rate above the one they expect to pay, so a rise does not catch them out. Choose the margin you want to test. It is your choice, not a published requirement.
A percentage of your total limits, treated as a monthly commitment. Lenders form their own view of a card limit and that treatment varies between them, so this calculator assumes nothing: set the figure you want applied.
Left at zero, the number of dependants changes nothing and their cost should already sit inside your living expenses. Set an amount here instead if you would rather account for them separately.
The number of years you want to spread repayments over. A longer term lowers the monthly repayment and raises the estimate, while costing more interest overall.
How the estimate is worked out
Every line below updates as you type, so you can see exactly which figure moved the result.
- Net monthly income counted
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- Less living expenses you entered
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- Less allowance for dependants
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- Less existing loan repayments
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- Less monthly cost applied to card limits
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- Less the amount you keep spare
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- Monthly amount left for a new repayment
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That monthly figure is then spread across the term you chose, at the rate you entered plus the margin you added, to arrive at the loan estimate. It is simple arithmetic on your own numbers, not a lender assessment.
Indicative loan estimate
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Based on – a month, tested at – over –.
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Monthly repayment at the – you entered
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Indicative purchase figure, before purchase costs
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This adds your available funds to the loan estimate. It does not deduct stamp duty, lenders mortgage insurance, legal, inspection or other purchase costs, all of which reduce what is left for the property itself.
This figure is an estimate produced from the numbers you entered. It is general information only and has been prepared without taking into account your objectives, financial situation or needs.
It is not credit assistance, not an offer of finance, and not a guarantee of borrowing capacity. What you can actually borrow is determined by a lender on application, against that lender’s own criteria.
See our Terms of Service for the full statement.
Nothing you type here leaves your browser. There is no sending, no saving and no record kept.
What this calculator cannot know
A calculator can only work with what you type into it. A lender assessing a real application looks at a great deal more, which is why the number above is a starting point for a conversation rather than an answer.
- Your credit history, and how your accounts have been conducted.
- How a particular lender treats each part of your income, which varies between lenders and between income types.
- The minimum household expense figure a lender applies, which is set by that lender and may be higher than yours.
- Product, policy and location rules that differ between lenders and change over time.
- Anything about the property itself, including how a valuer sees it.
None of that can be reduced to a formula on a web page, and we are not going to pretend otherwise. If the estimate is close to what you need, the useful next step is a conversation about which lenders suit your circumstances.
Frequently asked questions
How accurate is a borrowing capacity estimate?
It is as accurate as the figures and assumptions you feed it, and no more. The arithmetic here is straightforward: it works out what is left over each month, then works backwards to the loan size that repayment would service over the term you chose. A lender applies its own assessment rate, its own expense benchmark and its own income treatment, so a real assessment can land above or below this figure. Treat it as a range finder, not a decision.
Why does the calculator ask me to enter the interest rate?
Because we are a credit representative, not a rate publisher, and a rate typed into a web page goes stale quickly. Rates also differ by lender, product, loan purpose and your own circumstances, so a single number presented as the rate would be misleading. Setting it yourself keeps the estimate honest and lets you see how sensitive the result is when the rate moves.
What is the extra margin for?
It lets you test the same numbers at a rate higher than the one you expect to pay, so you can see what happens if rates rise. Move it up and down and watch the estimate change. The size of the margin is your choice. We have not set it to any lender requirement, because those vary and change.
Why do credit card limits reduce the estimate when the balance is zero?
Because a limit is money you could draw at any time, some lenders look at the limit available rather than the balance you carry. How each lender treats that varies, so this calculator does not assume a figure. You set the monthly percentage applied to your limits, and you can set it to zero to see the difference reducing or closing a card would make.
Do my figures get sent anywhere?
No. The calculation runs entirely in your browser. The figures are never submitted, never stored, never sent to analytics and never passed to any third party script. Close the tab and the numbers are gone.
What should I do with the result?
Use it to frame a conversation. If the estimate is in the region you need, the next step is working out which lenders suit your income type, your deposit position and your plans. If it is short, the useful questions are usually about structure: term, existing commitments, card limits and how income is evidenced. Book a session and we will go through your actual position rather than a placeholder one.
Guides worth reading next
Plain-English guides on the finance questions we get asked most on the Peninsula.
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Read the guide →When to refinance your home loan — a Mornington Peninsula guide
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Read the guide →How much can I borrow when self-employed?
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Read the guide →Turn an estimate into a real number
An introductory session costs nothing and carries no obligation. Bring the figures you entered here and we will work through what a lender would actually make of them.