How do you estimate LMI?

If your Loan-to-Value Ratio (LVR) is above 80%, we apply a tiered LMI approximation based on your LVR band and loan size. The estimate ranges from ~0.7%–0.9% (80–85% LVR) up to ~2.6%–3.2% (90–95% LVR). We default to capitalising LMI into the loan but you can switch to paying it upfront. Actual LMI varies by lender/insurer and application details.

Which tax year do you use when converting gross to net income?

We use 2026/27 Australian resident income tax bands. The optional 2% Medicare levy estimate does not account for reductions, exemptions, the Medicare Levy Surcharge, or offsets.

How are living expenses and dependants handled?

We enforce a conservative minimum monthly expense floor that scales with the number of dependants (0–6). You can enter higher expenses; the floor prevents unrealistically low costs of living.

Do you include stamp duty and state costs?

Yes. We reference the state stamp duty tables already in the app’s script.js for indicative calculations. Check your state/territory revenue office or your lender for exact, current amounts.

Why add a 3% serviceability buffer?

Lenders commonly assess your ability to repay at a higher buffered rate to account for potential rate rises. The calculator applies a 3% buffer to the entered rate as an indicative assumption.

Is this financial advice?

No. BorrowPower is a general-information tool only. Speak to a licensed professional for advice tailored to you.