- APRA expects lenders to assess repayments at least 3 percentage points above the loan rate.
- Lenders use the higher of your declared expenses and a benchmark (HEM), and count about 3.8% of credit card limits as a monthly repayment.
- Since February 2026 banks can only write a limited share of new loans at 6× income or more.
This is an estimate – each lender’s calculator differs.
FAQ
How much can I borrow on $110,000?
Roughly $450,000 for a single applicant with $2,800 of monthly expenses, $300 of other repayments and a 5.9% rate.
Sources (checked 6 November 2026): APRA Prudential Practice Guide APG 223 (3% serviceability buffer); APRA debt-to-income limit (February 2026); ATO individual income tax rates 2026-27; Medicare levy; low income tax offset.