Discover your borrowing power
What we ask
A few simple questions about you, such as income and expenses.
What you’ll see
Your estimated borrowing power for a home loan with repayment options.
Frequently asked questions
Your borrowing power depends mainly on how much you earn (income) and what you need to spend your money on (expenses). We consider things like school fees, utility bills, rent and debt repayments - as well as your entertainment and grocery spend - to ensure you’re able to repay the loan amount over time, given your finances and lifestyle.
There are some things you can do to help increase your borrowing power:
- Reduce your credit limit – close any unused credit cards
- Pay down your debts, like personal loans
- Lower your spending
- Keep a good credit score
- Split your liabilities with a partner if you’re borrowing on your own
- Start or keep saving to demonstrate a good savings history.
You might also be able to increase the amount you can borrow by asking a family member to guarantee all or part of your loan. At Westpac, this is called a Family Security Guarantee and it could help you get into the market quicker.
Your limit on other debts, like credit cards and personal loans, might affect your borrowing power. Even if you’ve paid your credit card off completely, your home lender will still look at these limits as potential debt, which affects how much they’ll be willing to lend you.
Your history of repayments on other debts can also come into play. So it’s worth getting a copy of your credit report to check your credit history before applying. If it’s not as strong as it could be, focus on paying down personal loans and credit cards or closing loan and credit accounts that you’re not using.
Employment status also has an influence, as it might be more complex to demonstrate your income if you’re self-employed or own a business.
Joint home loan applications are more complex for a lender to assess. On one hand, you and the person or people you’re applying with may have a great deal more borrowing power, owing to your collective assets and deposit. On the other hand, you may have a greater collective total of debt and financial history for your lender to consider, and this might limit what you can borrow together.
We love them dearly, but no parent can deny that children cost money to raise and support. As with home loans, the responsibility of parenting lasts decades – and so do the associated costs. This is partly why the number of dependents you support factors into your borrowing power – your family is a major and important ongoing part of your life that costs money, so it ought to play into what you can afford to repay in the long term.
The answer has less to do with your salary and more to do with the broader context of your financial situation.
Your salary is an important element in assessing how much you can borrow, but so are your expenses, the limits on your credit accounts and your credit history. Each of these things presents us with information that helps us understand whether you could afford to repay the loan.
How much deposit you’ve saved is also important – typically, if you don’t have a deposit of 20% of the property’s bank valuation, you may need to pay lenders mortgage insurance.
This could include bonuses or invoices paid for jobs other than your main one. It could also include interest earned on investments, like other properties or stocks you own.
This can include everything involved in maintaining your investment property. The costs could include strata payments, maintenance expenses, utilities and council rates.
Simply check your account statements or online banking dashboard. Each credit card and account with an overdraft should display a credit limit alongside the amount you’ve already borrowed from that credit account. If your bank doesn’t display overdraft limits online or in statements, give them a call and ask.
Once you have the figures, add them up. An accurate summary of all your credit and overdraft accounts will give you a more accurate calculation here and help us process your application faster when you apply.
Things you should know:
Credit Criteria, fees and charges apply. Terms and conditions available on request. Based on Westpac's credit criteria, residential lending is not available for Non-Australian Resident borrowers.
Special offers are only available on new Flexi First Option Home and Investment Loans. Discounts do not apply to internal refinances or switches within the Westpac Group, which includes refinances from Westpac, St.George, Bank of Melbourne, BankSA and RAMS. Not available to company and trust account holders. Offer may be varied or withdrawn at any time.
1.Offer commences 18/09/2020 and may be varied or withdrawn at any time. This offer is only available on new Flexi First Option Home Loans with Principal & Interest repayments. Rate includes a 1.64% p.a. discount off our Flexi First Option Home Loan Variable Rate for two years from the loan settlement date, at the end of the period it will revert to a 1.14% p.a. discount for the remainder of the life of the loan. Excludes internal refinances or switches within the Westpac Group, which includes refinances from Westpac, St.George, Bank of Melbourne, BankSA and RAMS. Not available to company and trust account holders. Interest rate is subject to change.
2.Comparison rate: The comparison rate is based on a loan of $150,000 over the term of 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
3.Offer commences 18/09/2020. This offer is only available on new Flexi First Option Investment Property Loans with Principal & Interest repayments. Rate Includes a 1.89% p.a. discount off our Flexi First Option Investment Property Loan Principal & Interest Variable Rate for two years from the loan settlement date, at the end of the period it will revert to a 1.29% p.a. discount for the remainder of the life of the loan. Excludes internal refinances or switches within the Westpac Group, which includes refinances from Westpac, St.George, Bank of Melbourne, BankSA and RAMS. Not available to company and trust account holders. Offer may be varied or withdrawn at any time. Interest rates are subject to change.