These are terms that lenders use to describe how much you might be able to borrow, based on your financial situation. You’ll need to know your income before tax as well as your expenses. Think of it as a maximum borrowing power calculator, helping you work out what a bank takes into consideration to ensure you could repay your home loan and meet your other outgoings. This calculator helps you work out the most you could borrow from the bank to buy your new home. It’s a good idea to round up your current expenses figure so that you have a buffer for unexpected costs. Tip: Consider whether your new home could cost more to live in (for example if interest rates rise or it’s a bigger house with larger heating bills than you’re used to). Subtract your expenses from your income to find out what you could repay.
You don’t need to add your current rent/accommodation costs if you’ll be living in your new home. Calculate how much you’d be happy to pay by adding up all of your expenses like school fees, utility bills and debt repayments. This calculator helps you work out how much you can afford to borrow. Our affordability and maximum home loan calculators can help you work this out. You need to know how much you comfortably afford to repay, given your other expenses and without impacting your lifestyle too much. Working out how much you could borrow is an important part of choosing your new home and home loan.