How BorrowPower works

BorrowPower Data & Methodology

Last reviewed 2 September 2026

BorrowPower is an independent planning tool. It applies published, standardised assumptions so you can test a scenario before speaking with a lender, broker, conveyancer or licensed adviser. It is not lender underwriting, an approval, a quote or personal financial advice.

Borrowing power

The borrowing calculator starts with the income, expenses, dependants, debts and card limits you enter. It models Australian resident income tax using the 2026/27 settings and can apply a simple 2% Medicare levy estimate. It then tests repayments using a 3 percentage-point serviceability buffer. APRA's mortgage lending standard sets this minimum buffer for authorised deposit-taking institutions; individual lenders can use different assessment rates and policy rules.

BorrowPower uses a transparent household expense floor that rises with dependants. It is not a lender's private Household Expenditure Measure (HEM) or a statement of the minimum expenses a lender will accept. You can enter higher costs, and a lender may still use a higher figure after reviewing your application.

Deposit, duty and LMI estimates

The Deposit & Upfront Cost Calculator uses general transfer-duty tables and selected first-home, owner-occupier and foreign-purchaser rules where the available inputs are sufficient. Transfer duty, concessions and surcharges can depend on facts the calculator does not collect, including the contract date, property use, residency and eligibility. Check the relevant revenue authority before relying on an estimate.

Loan-to-value ratio (LVR) is calculated as loan amount divided by property value. The calculator's LMI figure is an approximation based on loan size and LVR; it is not an insurer or lender quote. LMI can depend on the lender, insurer, product, borrower profile and loan purpose. It usually protects the lender rather than the borrower.

State and territory settings were last checked on 27 August 2026. The calculator covers all jurisdictions for general duty, but models selected concessions only where the available inputs make that safer than guessing.

Government scheme checker

The First Home Buyer Scheme Checker compares published numerical settings for the Australian Government 5% Deposit Scheme and Help to Buy. It cannot establish an applicant's personal eligibility, lender participation, scheme allocation, final property eligibility or approval. Those schemes and their settings can change.

Public lender benchmark

The lender benchmark records BorrowPower and CommBank calculator results for the same five household scenarios, using a shared customer rate, with the date, repayment type, term and LVR context documented on the page. It is a transparency exercise, not a ranking. Calculator interfaces, rates and policy settings change, and public estimates are not a substitute for an application.

Review and corrections

BorrowPower reviews material calculator assumptions when there is a relevant tax, duty, government-scheme or policy change, and labels the review date on the relevant page. Public lender benchmark results are intended to be rechecked monthly. To flag an issue or a source that has changed, email borrowpowerau@gmail.com.

General information only, not financial, credit, tax or legal advice. Confirm costs, eligibility and lending criteria with the relevant authority, lender or licensed professional.