What lenders really look at when they size up your home loan — and why the right lender can approve you for tens of thousands more. Free borrowing power check, no cost to you.
Rated 5 from 131 Reviews
It’s the first question almost every buyer asks — and the honest answer is: it depends on more than your salary. Lenders don’t just multiply your income by a number. They work out your real surplus — what’s left after tax, living costs and existing commitments — then stress-test it to make sure you could still repay if rates rose. Two people on the same income can be approved for wildly different amounts.
Here’s the part most people don’t know: every lender calculates borrowing power differently. They use different expense benchmarks, treat overtime and bonuses differently, and assess existing debts their own way. Walk into one bank and you get one number — their number. We run your situation across 30+ banks and lenders and find the one whose assessment suits you best. For the same income, that difference is regularly $50,000–$100,000+ in extra borrowing capacity. That’s not a trick — it’s just what a single bank can never show you.
Start with our free borrowing power calculator — it uses proper ATO tax rates, the HEM living-cost benchmark and the APRA buffer, so it’s a genuine indicative figure, not a back-of-envelope guess. Then book a free chat and we’ll pin it down against real lender policies. Already know your budget? Our stamp duty calculator shows the other big upfront cost.
You’ll see rules of thumb online — “5 to 6 times your income” and the like. They’re a rough starting point at best, because they ignore your expenses, debts and which lender you use. As a very rough guide a household might borrow somewhere in that range, but the real figure only comes from a proper assessment. Rather than guess, run the calculator or call us — it takes minutes and it’s free.
We help buyers work out their real borrowing power right across Gippsland — Traralgon, Morwell, Moe, Warragul, Sale and every town between. Whether it’s a first home, a refinance or an investment, you don’t pay us a cent — the lender does, at settlement. Rated 5.0 from 131 Google reviews. Not sure where to start? See how much deposit you need. Call 1300 442 497.
There's no single answer from salary alone — two people earning the same can be approved for very different amounts depending on their expenses, debts and which lender assesses them. The fastest way to a real figure is our free borrowing power calculator, then a quick chat.
Usually the serviceability buffer — lenders must check you could repay at about 3% above the actual rate. Unused credit card limits and small ongoing debts also chip away at it. The good news: much of that is fixable before you apply, and we'll show you what to tidy first.
Often, yes. Every lender calculates capacity differently, so we compare 30+ and find the one whose policy suits you. For the same income that regularly means $50,000–$100,000+ more than a single bank would offer — entirely legitimately.
No — using the calculator or talking to us costs you nothing and leaves no mark on your credit file. A credit enquiry only happens when you formally apply for a loan, and we make sure you only apply to the right lender, once.
1. Understanding Your Needs
Your mortgage journey begins with a detailed consultation with your Finance & Mortgage Broker. Your broker will listen to your property goals, whether you’re buying a home, investing in real estate, or seeking a commercial loan. They will assess your financial situation, considering factors like income, savings, liabilities, and credit history, to provide tailored advice on loan options available to you.
2. Financial Positioning
The next step involves your broker conducting a thorough evaluation of your financial position. This includes reviewing your income, bank statements, assets, liabilities, credit history, and savings. Your broker will then calculate your borrowing capacity, helping you understand how much you can afford to borrow and how much your monthly repayments might be. Your broker will also assess whether you qualify for any interest rate discounts or government schemes, like first-home buyer grants
3. Comparing Loan Options
Once your financial situation is fully assessed, your broker will begin comparing loan products from a range of lenders across Australia. They will help you weigh the benefits of fixed interest rate loans versus variable interest rate loans, as well as exploring options for offset accounts and interest rate discounts. They will also explain important terms like loan features, fees, and other considerations like the potential for future rate changes or LVR adjustments.
4. Pre-Approval Process
Pre-approval is a crucial step in the property buying process. With pre-approval, you’ll have a clear idea of the loan amount you can borrow, which strengthens your position in the local property market. Your broker will help you gather the necessary documents and submit them to the lender for pre-approval, ensuring the process is as quick and straightforward as possible.
5. Submitting the Loan Application
Once pre-approval is in hand, your broker will help you complete the loan application. They will guide you through submitting all necessary paperwork to the lender, including documents like bank statements, proof of income, and details of existing liabilities. Your broker will communicate directly with the lender to ensure the application is processed quickly, ensuring no delays in getting you the loan you need.
6. Loan Approval & Settlement
After your loan is approved, your broker will review the final loan offer with you and help arrange any necessary insurance, such as mortgage protection insurance. They will also work with you to ensure you understand the terms of the loan and guide you through the settlement process. Your broker will remain available to help you navigate any final hurdles before you complete the purchase of your property.
7. Finalising Ownership
The final step is settlement, when your loan is officially advanced, and you take ownership of the property. Your broker will coordinate with the lender and conveyancer to ensure the transfer goes smoothly. Once the settlement is complete, you’ll officially become the owner of the property, and your Finance & Mortgage Broker will continue to offer guidance to help you manage your loan and stay on track with repayments.
JS
Joanne Shih
Outstanding Broker — Highly Recommend. Dougal has been an absolute pleasure to work with throughout the whole process. He’s incredibly easy to talk to and always quick to respond — even late at night or on weekends — which made a huge difference whenever I had questions or concerns. He’s clearly very sharp with numbers and knows how to structure things properly, which is exactly what you want in a broker. He handled communication with the banks really well, so I didn’t have to stress or deal with all the unnecessary back and forth myself, and I always felt like my needs were the priority. What I appreciated most was that he actually took the time to go through my financial situation and discuss strategies with me — something other brokers I spoke to didn’t really do. Even though my case was high LVR, the loan was approved within 2 months of our first contact, which I was really happy with. Most importantly, he was incredibly patient with all my overthinking and endless questions, and never once made me feel rushed or silly for asking. Couldn’t recommend Dougal more highly.
MK
Matt Kay
Communication was great from the start to the end with a great result. Dougal and the team know what there talking about and made the experience smooth and stress free.
SH
Sophie Hildebrand
Had a really great experience working with Dougal. He was professional, easy to communicate with, and made the whole process smooth and stress-free. Always quick to answer questions and kept us informed every step of the way. Highly recommend!
We can help with Home and Investment Loans, Construction Loans, Car Loans, Personal Loans and much more. If you're looking to borrow to buy something, we can probably help.
Mortgage Brokers are there to help you find the right loan whether it be from the major banks, smaller lenders or other sources. We have a broad range of products (more than any single lender can offer) which means we can do all the legwork to find the right loan for you.
Of course! We believe that we can find the best interest rate for you to refinance to, whether it's a Home Loan or Investment Loan.
We love helping First Home Buyers! We're experts at the entire process and can help you get the right Home Loan. We're also across the various schemes to help First Home Buyers such as the First Home Owners Grant and the various stamp duty exemptions available.
All of our Mortgage Brokers are accredited and members of the Mortgage and Finance Association of Australia. They are extremely professional and provide exceptional service across a range of lending options.
We take look at a wide range of products available from Banks, Credit Unions & other lenders across the country. This means we can search thousands of products and make sure we're always recommending the best Home Loans for our clients.
Money Sense Finance Pty Ltd trading as Money Sense Lending. ABN: 68 687 032 373. Credit Representative #569124 is authorised under Australian Credit License #232706.
Disclaimer: This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.
