Mortgage Affordability Calculator

Award Winning Melbourne Mortgage Broker

Introduction to Mortgage Affordability

Mortgage affordability is a key consideration for anyone looking to buy a home or invest in property. It refers to your ability to comfortably manage your home loan repayments based on your current financial situation. Understanding your borrowing power—the amount you can borrow based on your income, expenses, and credit history—is essential in determining what you can realistically afford. By using a borrowing power calculator, you can estimate your borrowing capacity by factoring in your annual income, monthly expenses, and any existing debts, such as personal loans or credit cards. It’s important to take a close look at your personal financial circumstances, including all income sources and outgoings, to get an accurate picture of your borrowing power. This approach ensures you borrow based on what you can truly afford, helping you make informed decisions about your next home or investment.

How to Calculate Your Mortgage Affordability

Understanding Home Loans

Home loans, or mortgages, are specialised loans designed to help you purchase or refinance a property. There are several types of home loans available, each tailored to different needs. For example, owner-occupier loans are intended for those who plan to live in the property, often featuring lower interest rates and flexible repayment options. Investment property loans, on the other hand, are designed for those purchasing property as an investment and may have different interest rates and lending criteria. Other options include construction loans for building a new home. Each loan type comes with its own features, such as varying loan terms, repayment structures, and interest rates. To find the right fit, it’s important to compare your options using a mortgage calculator, which allows you to see how different loans, interest rates, and repayment plans could impact your finances. Understanding these differences will help you choose a home loan that aligns with your goals and financial situation.

Income assessment

Net Salary (PAYG) – Look at your most recent payslip and select your pay cycle (Weekly, Fortnightly or Monthly). Then look at how much you received after tax and input that in this category. If your income varies from paycheck to paycheck because of overtime and allowances, find a payslip that is a typical payslip (not the highest or lowest) and input the after tax amount. Make sure to include all details relevant to your income for an accurate assessment.
Net Salary (Self-Employed) – Change the pay cycle to Annually and look at your most recent Notice of Assessment and input the after tax amount. Again, ensure you provide all details relevant to your financial situation.
Other Net Income – This category will include your other income sources such as rental income, Centrelink, child support, bonus income or commission etc. Including all details relevant to these sources is important for an accurate calculation.
For the most accurate borrowing estimate, a full understanding of your complete financial position is necessary, as the calculator may not account for every financial factor.

Existing debts and expenses

Expenses are divided into multiple categories. Groceries, recreation, medical, insurance, education, clothing, media, transport and more. Think about how much you spend in each of these categories per month, add them together and input the monthly figures.
Other payments can include a personal loan, car loan, other debts such as credit cards, other mortgage repayments or child maintenance. Credit accounts, such as store cards or lines of credit, should also be included as they impact your borrowing capacity.

Credit card limits

Input the credit limit for each card (not just the balance), as well as the limits (even if you pay them off in full every month) of all credit cards, overdraft accounts, and buy now pay later (Afterpay) facilities. Lenders will consider your total credit card limits, including all cards and buy now pay later facilities, when assessing your application. High credit limits can reduce your borrowing capacity, regardless of your current balance.

Loan details

Expert Home Loan Advice from Melbourne’s Leading Team of Mortgage Brokers. Call (03) 9988 1818.

Our Team

Meet the specialists

Emmanuel Guignard (MBA)

Director & Principal Mortgage Broker

Daniel Venpin

Senior Mortgage Broker / Partner

Jurad Blanusa

Mortgage Broker

Harrison Handley

Mortgage Broker

Greig Holley

Mortgage Broker / Commercial lending specialist

Airlie Williams

Broker assistant

Celine Block

Broker Assistant

CLIENT TESTIMONIALS

What Our Clients Say

     
 
 
      Posted on Google  
   
   Carisse Matthews 
 1 September 2026
 
 
 Trustindex verifies that the original source of the review is Google. Thank you Loanscope for making searching and signing up for a better rate as streamline as possible. Appreciate as always your efficiency and second-to-none level of communication to us during the process!
  
 
     Posted on Google  
   
   Yusuf Hurmiz 
 18 August 2026
 
 
 Trustindex verifies that the original source of the review is Google. Amanda and Harrison were absolutely amazing throughout the whole home loan process. They made everything simple and stress-free, were always quick to answer any questions, and kept me updated every step of the way. I really appreciate all their help in getting my home loan approved. Highly recommend them to anyone looking for great mortgage brokers!
  
 
     Posted on Google  
   
   Rezwan Haque 
 10 August 2026
 
 
 Trustindex verifies that the original source of the review is Google. Daniel and Catherine has been more than patient and understanding with my circumstances. It took us a few months, but we all made it as a team 😊
  
 
     Posted on Google  
   
   Orlando Combo jazz band 
 9 August 2026
 
 
 Trustindex verifies that the original source of the review is Google. We have been giving the most efficient,  thorough and punctual service from Daniel at Loanscope that one could ask for……very highly recommended. Lucas
  
 
     Posted on Google  
   
   Ralf Maurer 
 29 July 2026
 
 
 Trustindex verifies that the original source of the review is Google. We had a great experience working with Harrison and the Loanscope team. They took the time to clearly explain every step of the process and were always proactive in keeping things moving. What really stood out was their willingness to understand our specific situation and tailor their advice accordingly. Communication was excellent throughout, and we always felt well supported. Highly recommend their services to anyone looking for a knowledgeable and reliable mortgage broker.
  
 
     Posted on Google  
   
   Bernard Ramos 
 22 July 2026
 
 
 Trustindex verifies that the original source of the review is Google. Thank you very much @Daniel Venpin for helping us get our own property! You’re just very easy to deal with. Helping us throughout the process, explaining the things very well. We really appreciate your help.
  
 
     Posted on Google  
   
   Jasmin Le 
 16 July 2026
 
 
 Trustindex verifies that the original source of the review is Google. I can’t thank Daniel and Catherine enough for helping me secure my second investment property,another huge milestone! It still feels surreal. From my first property to now, they’ve been there every step of the way with expert guidance, patience, and genuine support. They made the entire process smooth, stress-free, and always took the time to answer my questions. I’m so grateful for everything you’ve both done. I highly recommend Daniel and Catherine to anyone looking for knowledgeable, trustworthy professionals who truly care about helping you achieve your property goals. Thank you for helping make another dream a reality!
  
 
     Posted on Google  
   
   saptarshi guha 
 3 July 2026
 
 
 Trustindex verifies that the original source of the review is Google. Daniel is the reason why I got to have my first home, he didn’t only help me in getting the mortgage but also assisted me with the property estimation which gave me a better idea about the property market in different localities. On top of that he was there with me all the time during the whole process. I am also looking forward with my future ventures with Loanscope
  
 
     Posted on Google  
   
   Carolyn Paragreen 
 25 June 2026
 
 
 Trustindex verifies that the original source of the review is Google. Jurad has been absolutely amazing dealing with my purchase of an investment property. He kept in touch throughout the whole process (and kept me calm!) and explained everything along the way. I would 100% recommend Jurad to anyone looking for a dedicated Broker.
  
 
     Posted on Google  
   
   Henry Schreier 
 25 June 2026
 
 
 Trustindex verifies that the original source of the review is Google. Highly recommend Loanscope! As a first-time homebuyer, I was prepared for a stressful ordeal, but they made the entire process incredibly easy and straightforward. More than just managing the loan, they actually took the time to educate me along the way so I felt confident in my decisions. Outstanding service!
  
 
 
  
 
 
   Verified by Trustindex  Trustindex verified badge is the Universal Symbol of Trust. Only the greatest companies can get the verified badge who has a review score above 4.5, based on customer reviews over the past 12 months. Read more