Comparing a Big 4 rate to the best digital lender on a $600,000 loan over 30 years. Know your real repayments, LMI exposure, and APRA serviceability — before you apply.
APRA-compliant repayments, LMI check and live lender comparison — instant, private, free.
Enter your loan details and click Calculate to see full repayment breakdown and serviceability assessment.
Indicative borrowing capacity at the standard 6× DTI ceiling used by most Australian lenders, plus the 7× DTI stretch some lenders allow for clean profiles. Actual capacity also depends on living expenses (HEM), existing debts, dependants, and current rates — the calculator above stress-tests your specific profile under APRA's +3% buffer.
| Gross annual income | Max loan @ 6× DTI | Max loan @ 7× DTI | 20% deposit needed |
|---|---|---|---|
| $60,000 | $360,000 | $420,000 | $90,000 – $105,000 |
| $80,000 | $480,000 | $560,000 | $120,000 – $140,000 |
| $100,000 | $600,000 | $700,000 | $150,000 – $175,000 |
| $120,000 | $720,000 | $840,000 | $180,000 – $210,000 |
| $150,000 | $900,000 | $1,050,000 | $225,000 – $262,500 |
| $200,000 | $1,200,000 | $1,400,000 | $300,000 – $350,000 |
DTI = total household debt ÷ gross annual income. APRA flags loans above 6× DTI as higher-risk; most banks cap at 6× and some lenders stretch to 7× for clean profiles (no HECS, no car loan, no credit-card debt). Figures assume single applicant with no other debt; couples combine income but lenders only count ~70–80% of the lower earner in serviceability. Always verify with the calculator above using your actual numbers.
How much you can borrow depends on your gross income, existing debts, number of dependants, and the lender's serviceability assessment. APRA requires lenders to test repayments at your contracted rate plus a 3% buffer (minimum 5.25%). As a rough guide, most lenders will approve a loan up to 6× your annual gross income, though individual circumstances vary significantly.
LVR (Loan-to-Value Ratio) is your loan amount divided by the property value, expressed as a percentage. When your LVR exceeds 80%, most lenders require Lenders Mortgage Insurance (LMI). LMI protects the lender — not you — if you default. Premiums can add $10,000–$30,000+ to your loan. Saving a 20% deposit avoids LMI entirely.
APRA requires all Australian lenders to assess your ability to repay at your contracted interest rate plus 3%, with a minimum floor of 5.25% p.a. This buffer protects borrowers against future rate rises. If you borrow at 6.2%, the bank actually tests your repayments at 9.2% p.a. This is a mandatory stress test — not the rate you actually pay.
Principal & Interest (P&I) repayments reduce your loan balance over time. Interest Only (IO) repayments cover only the interest for a set period (typically 1–5 years), after which the loan reverts to P&I. IO repayments are lower initially but you build no equity and total interest cost is higher over the loan's life.
APRA considers a DTI ratio above 6× (total loan ÷ gross annual income) as higher risk. Many lenders cap loans at 6× or 7× DTI. For example, on a $100,000 income, a DTI of 6× means a maximum loan of $600,000. A lower DTI improves your approval chances and may qualify you for better rates.
Most lenders require at least 5% of the purchase price as genuine savings — funds held for 3+ months in your name. A 20% deposit (LVR 80%) avoids Lenders Mortgage Insurance entirely. Under the First Home Guarantee, eligible first-home buyers can purchase with just 5% deposit without paying LMI — the Government guarantees the additional 15%. Stamp duty and conveyancing costs are extra and not lendable in most cases.
Variable rates respond to RBA decisions and offer offset accounts, redraw, and flexible early-repayment. Fixed rates (typically 1–5 years) lock in certainty but usually disable offset and charge break costs if you exit early. In mid-2026 with the RBA holding at 4.35%, most borrowers default to variable for the offset benefit, optionally fixing a portion (split loan) for budget certainty.
Mortgage brokers (MFAA or FBAA accredited) access 20–40+ lenders and are paid by the lender, not you. They handle paperwork, negotiate rates, and often source deals not advertised publicly. Going direct works if you already have an established banking relationship and a clean credit profile. Brokers add the most value for complex situations: self-employed income, high LVR, recent credit events, or refinancing across multiple debts.
The First Home Guarantee (FHG) lets eligible first-home buyers purchase with a 5% deposit and no LMI — the Government guarantees the remaining 15%. Income caps apply ($125,000 single / $200,000 couple) and property price caps vary by city. Because no LMI is added to your loan, your APRA-tested borrowing power is slightly higher than a conventional 5% deposit loan with LMI capitalised. Places are limited and reset annually on 1 July.