Affordability

How do I use the BetterBond home loan affordability calculator?

The home loan affordability calculator helps you estimate how much you can afford to spend on a home based on your income, expenses and current interest rates. It’s a quick way to set a realistic property budget and see what size bond you’re likely to qualify for before applying.

Calculate your affordability in six easy steps

1. 1.Enter your monthly gross income: this is your total income before tax and deductions. If you’re buying with a partner, include both incomes for a joint application.
2. 2.Enter your monthly nett income: this is the amount you see in your bank account on pay day – less all the company deductions.
3. 3.Enter your monthly expenses: add up your recurring monthly expenses such as rent, car repayments, credit cards, insurance, school fees and groceries. The calculator uses this to work out how much of your income is already allocated to living expenses.
4. 4.Enter the interest rate: the calculator is pre-loaded with the current prime interest rate, but you can adjust it to see how a change in rates can affect your affordability. A lower interest rate means your instalments are lower, allowing you to spend more on your purchase price for the same monthly repayment.
5. 5.Enter the repayment term (years): the calculator uses 20 years (240 months) as a common default but you can change it to see the impact on your monthly and total repayments.
6. 6.Click Calculate. The calculator will show you:
   • Total loan amount: the bond size you’re likely to qualify for.
   • Estimated monthly repayment: what your monthly bond repayment might be.

Pro tip: Adjust your income, expenses or deposit amount to instantly see how these changes affect your affordability. This makes it easy to set a comfortable homebuying budget and approach your bond application with confidence.