Smart Mortgage Calculator
Most Australian mortgage calculators make you jump between 3 or 4 separate tools — one for borrowing power, another for repayments, a third for stamp duty, and none of them factor in first home buyer grants or state-specific concessions.
This one does it all in a single view.
Borrowing power, repayments, stamp duty with FHB concessions, LMI, and government grants — calculated together, across every state and territory. Then hit the AI Advisor for a personalised assessment of your financial position, like having a virtual mortgage broker review your numbers on the spot.
Your Results
Estimates only. Stamp duty reflects FHB concessions where applicable. LMI may be waived under the First Home Guarantee. Always consult a licensed broker.
Borrowing Power
$394,172
vs Loan: $480,000
Repayments
$2,909
@ 6.1% p.a. for 30 yrs
Cash Needed to Settle
Total out-of-pocket cash you need on settlement day
TotalCost
Your Deposit
Deposit (equity in property)
$120,000Settlement Costs
Other Fees
$1,260Cash to Settle$121,260
Frequently Asked Questions
Common questions Australian home buyers ask about mortgages, borrowing power, and buying their first home.
On a $100k salary with no other debts, most lenders will approve roughly $550,000–$650,000 depending on your living expenses, dependants, and the interest rate buffer they apply (typically 3% above the actual rate). Use the calculator above to see your specific estimate — your borrowing power changes significantly based on credit cards, car loans, and household size.
Borrowing power is the maximum loan amount a lender will offer you based on your income, expenses, debts, and their serviceability assessment. Banks use a buffer rate (usually 3% above the actual rate) to stress-test whether you can still afford repayments if rates rise. They also apply the Household Expenditure Measure (HEM) — a minimum living expense benchmark — so even if you declare low expenses, lenders will use the HEM floor.
No. You can buy with as little as 5% deposit, but you'll typically pay Lenders Mortgage Insurance (LMI) if your deposit is under 20%. First home buyers may qualify for the First Home Guarantee scheme, which lets you buy with 5% deposit and no LMI. The trade-off with a smaller deposit is a larger loan, higher repayments, and LMI costs that get added to your loan balance.
LMI (Lenders Mortgage Insurance) is a one-off premium that protects the lender — not you — if you default on your loan. It's required when your deposit is less than 20% of the property value and can cost thousands (e.g., $8,000–$15,000+ on a $600k property with 10% deposit). You can avoid it by saving a 20% deposit, using a family guarantee, or qualifying for the government's First Home Guarantee scheme.
Each Australian state and territory has different stamp duty rates and first home buyer concessions. For example, in NSW first home buyers pay no stamp duty on properties up to $800,000, while in VIC the threshold is $600,000. Some states like QLD have recently increased their exemption thresholds. This calculator automatically applies the correct FHB concession based on the state you select.
The FHOG is a one-off government payment to help first home buyers purchase or build a new home. The amount varies by state — from $10,000 in NSW and VIC up to $30,000 in QLD and TAS. It generally only applies to new properties (not established homes) under a certain price cap. This calculator automatically checks your eligibility and deducts the grant from your cash to settle.
Variable rates offer flexibility — you can make extra repayments, use an offset account, and benefit if rates drop. Fixed rates give you repayment certainty for 1–5 years, but usually restrict extra repayments and don't allow offset accounts. Many borrowers split their loan (part fixed, part variable) to get the advantages of both. A mortgage broker can help you decide based on your financial goals.
With Principal & Interest (P&I), each repayment reduces your loan balance and covers interest — you're building equity. With Interest Only, you only pay the interest for a set period (usually 1–5 years), so your loan balance doesn't decrease. Interest Only is commonly used by investors for tax purposes but is generally not recommended for owner-occupiers as it costs significantly more over the life of the loan.
Lenders assess your credit card limit — not your balance — as a liability. They typically apply around 3.8% of your total credit limit as a monthly commitment, regardless of whether you use the card. For example, a $10,000 credit card limit reduces your borrowing power by roughly $40,000. Closing unused cards or reducing limits before applying for a loan can meaningfully increase how much you can borrow.
HEM (Household Expenditure Measure) is a benchmark published by the Melbourne Institute that estimates minimum living expenses for Australian households. Lenders use the higher of your declared living expenses or the HEM benchmark when assessing your loan. It varies by household type (single or joint) and number of dependants. If your declared expenses are below HEM, the lender will use HEM instead — which is why this calculator applies the same rule.
Most Australian bank and comparison site calculators are single-function tools — one for borrowing power, another for repayments, a third for stamp duty. None of them combine everything into a single view, and most don't factor in first home buyer grants or state-specific stamp duty concessions. This calculator does all of that in one place, including LMI estimates and the HEM benchmark that lenders actually use. Plus, the AI Broker Assessment analyses your specific numbers like a mortgage broker would.
The First Home Guarantee (FHBG) is an Australian Government initiative that allows eligible first home buyers to purchase with as little as a 5% deposit without paying Lenders Mortgage Insurance. The government guarantees up to 15% of the property value. There are price caps per region and income limits that apply. Tick the 'First Home Guarantee' option in the calculator to see how it affects your LMI and cash to settle.
The results from this calculator should be used as an indication only. Results do not represent either quotes or pre-qualifications for a loan. The specific details of your loan will be provided to you in your loan contract. It is advised that you get in touch with us before taking out a loan so that we can provide you with advice that is tailored to your situation.