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Know your budget

Before you start looking for a property you need to know how much you can afford to spend and repay.

The amount you can borrow will depend on a number of factors.

You can input details of your income and liabilities into our Borrowing power calculator1 to estimate how much you may be able to borrow.

What repayments can I afford?

To get started you can use our Repayment calculator1 to work out what your repayments will be, and options for shrinking your overall loan term by changing your repayment regularity or amount.

Your borrowing capacity

Westpac can give you a potential borrowing capacity letter which is valid for three months, It gives you an accurate estimate of what you can currently afford, taking into account:

  • Your annual income
  • Your monthly expenses
  • The type of loan and current interest rate
  • Repayment type (principal or principal and interest)
  • The loan term (number of years to pay the loan back)
  • Estimated repayments.

However, your borrowing capacity letter is provided as an indication only and isn’t a commitment from the bank to lend to you. If you wish to make a formal offer on a property or bid at an auction, you’ll need an approval in principle letter from us.

We are committed to responsible lending practice and, as such, we apply strict and sensible criteria to our lending to ensure that we only lend you amounts you can afford.

Can I get approval in principle?

Approval in principle is conditional approval from Westpac for your loan. It means your loan will be approved, subject to Westpac's normal lending criteria (e.g. verification of income, identification, credit check etc.) being satisfied. This is the best way to confirm how much you can borrow. It also means that you:

  • Know the maximum amount you’ll be able to borrow and what deposit you’ll need
  • Can be treated as a serious buyer by an agent.

Approval in principle is the first stage in the application process. Once approval in principle is given it is valid for three months.

There are 3 ways to apply for a loan with Westpac:

You can track the progress of your application by entering your Loan Application Number and last name.

Things you should know

1The calculations we give you are a general guide only and are based on current interest rates which are subject to change. The formula used in these calculators may change. Before relying on the calculation you should seek independent advice. Calculations do not take into account fees and charges.

The information contained within this page is general in nature. It serves as a guide only and does not take into account your personal financial needs. Before you act on this information you should seek independent legal and financial advice. Approval subject to credit criteria. 

Credit criteria, fees, charges, T&C's apply. 

Key Fact Sheet for Home Loans