How much could you borrow?
Get an estimate of your borrowing power in under 2 minutes, so you can start your property search with confidence.*
Tiimely own
You may be able to borrow up to
$000,000
The results of this calculator are an estimate only for Tiimely Own products. LVR-based pricing, eligibility criteria and terms conditions apply, including minimum 10% deposit and below 20% deposit only available where offset home loan is selected (offset facility, Lender's Mortgage Insurance (LMI) and monthly fee will apply). This calculator does not consider HECS debts, which may reduce your borrowing capacity. If you choose a home loan with one of our panel of lenders using a Tiimely Home broker, your borrowing capacity may vary based on your loan options. Learn more about how our calculator works below.
Why start with your borrowing power?
What affects your borrowing power?
Borrowing power is an estimate of how much you may be able to borrow while meeting other financial commitments. Key factors that lenders would generally consider:
How your deposit changes your loan
A larger deposit can reduce the amount you need to borrow and may help you avoid Lenders Mortgage Insurance (LMI), which usually applies when borrowing more than 80% of a property’s value. That can improve affordability and help your budget stretch further.
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Home loan repayments
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Refinancing
Estimate how much you could save by switching to a Tiimely Own home loan.
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What Is Borrowing Power and How Is It Calculated?
Borrowing power is an estimate of how much you may be able to borrow while meeting other financial commitments.
Each lender will calculate it differently, but generally, a borrowing power calculator considers things like your income, current loans and liabilities, credit cards and their limits, plus your living expenses.
Using our borrowing power calculator will give you an idea of what you could borrow. Learn more about what goes into calculating your borrowing power.
How Do You Calculate My Borrowing Power?
Every lender has their own formula for calculating your borrowing power, and generally there are seven main factors:
- Credit rating – a sound credit rating is one of the first things lenders look at, as it is based on your borrowing and repayment history.
- Deposit - the larger your deposit, the more you can borrow and the less interest you’ll have to pay on your loan.
- Income – this is not just how much your household brings in, but how much is left for home loan repayments after the bills and day-to-day expenses are paid.
- Level of debt – how much you owe on other loans, and your credit card limits also influence your available income.
- Savings history – A savings history of at least 3 months demonstrates to a lender that you’ll be able to manage your repayments.
- Home loan term – a lender will look more favourably at a longer loan term, however this means you pay more interest over the life of the loan.
- Property value - a lender may conduct a valuation of your chosen property to determine the amount they're prepared to lend you.
You can get an estimate of your borrowing power with Tiimely Home by using our borrowing calculator.
How Much Deposit Is Required for a Home Loan?
The simple answer is as much as you can possibly save. The larger the deposit you have, the smaller the loan you’ll need which will make the approval process easier and enable you to negotiate a better interest rate and loan terms.
Generally, the minimum home loan deposit required is 10%, but you should try and save at least 20% if you can, because if you borrow more than 80% of a property’s value, your lender may require you to take out Lenders’ Mortgage Insurance.
It’s also worth checking if you’re eligible for any grants or government schemes (such as the First Home Owner Grant), as they can help to boost your deposit amount.
What You Should Know About Lenders Mortgage Insurance (LMI)
Lenders' Mortgage Insurance is insurance that protects the lender from financial loss if you’re not able to make your repayments and default on the loan.
You’ll need to pay LMI if you borrow more than 80% of a property’s value (i.e. if you have less than a 20% deposit).
Factors that affect how much LMI include:
- The size of the loan - the bigger your loan, the higher the LMI
- Your deposit amount - the smaller the deposit, the higher the cost of LMI
- The purpose of the loan – investors can pay as much as 20% more for LMI than owner occupiers
- Your employment status – how much you earn and whether your work is full time or casual
- The insurer - premiums differ between insurers
LMI can cost you thousands of dollars, however there are ways to avoid paying LMI or reducing how much you pay including:
- Ensuring your deposit is 20% or as large a deposit as possible to lower the LMI premium
- Having a guarantor on your loan (Tiimely Own home loans don't offer guarantor loans, however our brokers can assist you in finding a suitable guarantor loan)
- Applying for the Home Guarantee Scheme (HGS), eligible first-home buyers to borrow up to 95% of the property value without paying LMI
Does a bigger deposit mean I can borrow more?
Not always. A bigger deposit can increase your maximum purchase price, because you need to borrow less overall, but borrowing power is mostly about whether you can afford the repayments, based on your income, expenses, and other commitments.
Using our borrowing calculator will give you an idea of what your borrowing power.
Learn more about what goes into calculating your borrowing power.
How can I increase my borrowing power?
You can increase your borrowing power by reducing your financial commitments.
Things like closing unused credit cards or reducing the limits or having extra income (like a second job or side hustle) can help. Also, make sure that you have all your extra income types (like overtime or commission) included when filling out an application.
Using a borrowing calculator can also help give an estimation of what you could borrow.
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How this borrowing calculator works
How do you calculate borrowing capacity?
The calculator is a guide only and estimates what you could borrow based on the income and expenses you enter, Tiimely Own rates, and an assumed 30-year term. We calculate borrowing power using the higher of your estimated expenses and HEM (Household Expenditure Measure).
The calculator result is an estimate only for Tiimely Own products and is subject to LVR-based pricing, eligibility criteria and terms and conditions.
You’ll get a more accurate assessment once you start an application and provide the property details, loan type, and your full personal and financial information.
Important information about our borrowing calculator
The calculator result is an estimate only for Tiimely Own products and is subject to LVR-based pricing, eligibility criteria and terms and conditions.
The page includes standard rate, comparison-rate, and general information disclosures for Tiimely Own and panel lender products, including that rates can change without notice and that comparison rates are example-based and may not include all fees.
Application/approval timeframes are estimates, subject to lender assessment and approval, and independent advice is recommended for personal circumstances.
No. This calculator doesn’t include HECS/HELP debt, and that can reduce how much you can borrow. If you have HECS/HELP, it’s worth talking to our team so we can give you a more accurate view of your borrowing power.