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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.


About


Income


Expenses



Frequently asked questions

Your borrowing power depends mainly on how much you earn and what you need to spend your money on (income and expenses).
 

When estimating your borrowing power, a lender will consider expenses such as school fees, utility bills, rent and debt repayments, as well as what you spend on entertainment and groceries. They do this to make sure that you will be able to repay the loan amount over time given your financial situation and lifestyle.
 

There are several things you can do to help increase your borrowing power when applying for a home loan:

  1. Reduce your credit limit – close any unused credit cards
  2. Pay down your debts such as any personal loans
  3. Reduce your spending
  4. Maintain a good credit score
  5. Split your liabilities with a partner if you are borrowing on your own
  6. Start or keep saving to demonstrate a good savings history.


You may 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 Parental Guarantee and could help you get into the market quicker.

Several factors affect your borrowing power other than your income and expenses. The maximum limit on other debts, such as credit cards and personal loans, may affect your borrowing power. Even if you’ve paid your credit card off completely, your home lender will still view the limit on your card as potential debt and this will affect how much they will be willing to lend you.
 

Your history of repayments on other debts may also play into how much you’re able to borrow. 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 is another factor that affects what you can borrow. If you’re self-employed or own a business, it may be more complex to demonstrate your income which could influence what you could borrow to buy property.

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 to contribute towards the loan. On the other hand, you may have a greater collective total of debt and financial history for your lender to consider and this may 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 factor into your borrowing power – your family is a major and important ongoing factor in 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 a lender with information that helps them understand whether you could afford to repay the loan.
 

Another important thing to look at is how much deposit you have saved – typically lenders require borrowers to contribute 20% of the loan value. If you don’t have a 20% deposit, you may need to consider paying lenders mortgage insurance to borrow the amount you need for the property you want to buy.

This could include bonuses or invoices you’ve had paid for jobs other than your main one. It could also include interest earned on investments such as 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. 


Home loan repayments

Estimate your monthly home loan repayments based on your loan amount.

Stamp Duty Calculator

Estimate how much Stamp Duty you might have to pay when buying a property.

Other calculators

Things you should know:

The above rates exclude any LVR discounts available for new loans.

 

* This calculation is not an offer of credit but an estimate only of what you may be able to borrow based on the information provided and does not include all applicable fees (except for monthly fees). Your borrowing power amount may be different when you complete a full application and we capture all details relevant to our lending criteria. Our lending criteria and basis upon which we assess what you can afford may change at any time without notice. Before acting on this calculation you should seek professional advice.

All interest rates referred to in the calculators are current, as indicated on westpac.com.au. The interest rates represented on this page may include promotional discounts and are subject to change. When assessing ability to service a loan, Westpac may use an interest rate that is higher than the current interest rate for the loan requested.
 

The output of each calculator is subject to the assumptions provided under each calculator and are subject to change.  The calculator does not take into account any future refinancing options which may be available. The calculator does not take into account any product features, grants or any applicable bank fees.  For details on fees and charges, please go to westpac.com.au

 

  1. Special Offer - Flexi First Option Home Loan with Principal and Interest repayment

    Credit criteria, fees, charges apply. Terms and conditions available on request. Based on Westpac's credit criteria, residential lending is not available for Non-Australian Resident borrowers.

    Offer commences 5/06/2020 and may be varied or withdrawn at any time. This offer is only available on new Flexi First Option Home Loans with principal and interest repayments. Rate includes a 1.14% p.a. discount off our Flexi First Option Home Loan Variable Rate for the Life of 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. The comparison rate is based on a loan of $150,000 over a 25 year term. 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. Special Offer - Flexi First Option Investment Property Loan with Principal and Interest repayment
     

Credit criteria, fees, charges apply. Terms and conditions available on request. Based on Westpac's credit criteria, residential lending is not available for Non-Australian Resident borrowers.
 

Offer commences 5/06/2020. This offer is only available on new Flexi First Option Investment Property Loans with principal and interest repayments. Rate Includes a 1.29% p.a. discount off our Flexi First Option Investment Property Loan Principal & Interest Variable Rate for the life of 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.