The Active Home Loan Manager

How much can I borrow? How much should I borrow?


Your home loan borrowing power is the maximum amount that lenders will let you borrow based on your unique financial situation. Each lender is likely to use a slightly different formula for this, so there isn’t one magic number that tells you how much you can  borrow. uno has a useful calculator, for which we will need to know some basic facts:

  • Your regular after tax income;
  • What debts you need to keep paying;
  • The minimum credit card limit(s) you can live with;
  • How many dependents you have.

The following factors are things we keep in mind when working out a loan amount that is comfortable to repay:

  • How much you need to live on (and if this will change in the future);
  • Other expenses that you must pay, such as child support;
  • How much you want to put towards your savings or investment goals;
  • The buffer you would like to have if your situation changes.

Your ideal loan amount will not be the most you can borrow from a lender but how much you can comfortably repay into the future.

Use our borrowing power calculator here

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Helen is Head of Content at uno - the smarter, faster way to get a better home loan.

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