1. What is Home Loan Eligibility?

This calculator determines how much you can borrow for a home loan in Australia based on your affordable monthly payments, interest rate, and loan term. It also considers government-backed schemes that may increase your borrowing power.

2. How Does the Calculator Work?

The calculator uses the standard loan formula:

Where:

• \( P \) — Maximum loan amount (AUD)
• \( PMT \) — Affordable monthly payment (AUD)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of monthly payments (years × 12)

Note: Government schemes may provide additional borrowing power beyond standard calculations.

3. Government Schemes in Australia

First Home Guarantee: Allows eligible first home buyers to purchase with as little as 5% deposit without paying Lenders Mortgage Insurance.
Family Home Guarantee: Supports single parents with children to buy a home with a 2% deposit.

4. Using the Calculator

Tips: Enter your comfortable monthly repayment amount, current interest rates, and desired loan term. Select any applicable government schemes for adjusted calculations.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between eligibility and approval?
A: This calculates how much you could borrow, but actual approval depends on credit history, expenses, and lender criteria.

Q2: How accurate is this calculator?
A: It provides estimates. Actual loan amounts may vary based on lender policies and your financial situation.

Q3: What other costs should I consider?
A: Remember stamp duty, legal fees, building inspections, and moving costs when budgeting for a home.

Q4: Can I borrow more than the calculator suggests?
A: Some lenders may offer higher amounts, but consider whether higher repayments would be sustainable.

Q5: How often should I recalculate?
A: Recalculate when interest rates change significantly or your financial situation changes.