Home loan affordability calculator

Buying a home can be an exciting step toward your future! But if you’re not sure what you can afford, it can also be a stressful one. So let’s cut out the guesswork. See how much you can afford to borrow with Mozo’s new home loan affordability calculator.

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Last updated 8 February 2025 Important disclosures and comparison rate warning*
What are your home loan needs?

Your loan-to-value ratio (LVR): 50%

Loan amount and LVR will affect interest rates.

  • Promoted

    Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Promoted

    Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    5.55 % p.a.
    Fixed 2 years
    Comparison rate
    6.05 % p.a.
    Initial monthly repayment
    $2,855
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Fast approval times. Min 30% deposit required. Borrow up to $10,000,000.

  • Promoted

    Variable Home Loan 90

    • Principal and Interest
    • LVR <90%
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.08 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.

  • Promoted

    OMG Home Loan

    • Owner Occupier
    • Principal & Interest
    • <60% LVR
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.02 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    BCU Bank’s OMG owner occupied home loan offers a variety of great low rates depending on your deposit. Save with no ongoing annual fees. Access your extra payments when you need to through the redraw facility. Pre-approval valid for 3 months.

  • Promoted

    Offset Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <70%
    Interest rate
    5.55 % p.a.
    Fixed 2 years
    Comparison rate
    6.28 % p.a.
    Initial monthly repayment
    $2,855
    Go to site

    Convenient offset account. No upfront or ongoing fees. Free extra repayments and redraw facility. Fast approval times. Min 30% deposit required. Borrow up to $10,000,000.

  • Promoted

    Basic Variable Home Loan

    • Owner Occupier
    • LVR <60%
    Interest rate
    6.13 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,040
    Go to site

    Competitive interest rate. No ongoing monthly loan maintenance fees. You can redraw your repayments if you’re ahead. Choose to repay weekly, fortnightly, or monthly. Make extra payments without penalty, to pay off your home loan even faster.

  • Promoted

    Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.74 % p.a.
    Fixed 2 years
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $2,915
    Go to site

    Secure a low rate and enjoy the certainty of repayments, with the BCU Fixed Rate Home Loan. Save with no ongoing annual fees. Pay up to $25,000 extra during a fixed period (T&Cs apply). Lock in for up to 5 years.

  • Promoted

    Fixed Rate Home Loan

    • Owner Occupier
    • LVR<80%
    Interest rate
    5.74 % p.a.
    Fixed 2 years
    Comparison rate
    6.21 % p.a.
    Initial monthly repayment
    $2,915
    Go to site

    Get repayment security with fixed rates from one to five years. Free extra repayments of up to $25,000 during the fixed rate period. Fix a portion of your loan and leave the rest variable. Choose to repay weekly, fortnightly, or monthly.

  • Promoted

    Intro Discounted Standard Variable Rate

    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.20 % p.a.
    Variable for 12 months and then 6.60% p.a.
    Comparison rate
    6.56 % p.a.
    Initial monthly repayment
    $3,191
    Go to site

    Enjoy a discount of 0.40% p.a. applied for the first 12 months of the loan. No application, account or establishment fees to pay to help pay. Make additional repayments without being penalised. Other fees may apply. 20% deposit required.

  • Promoted

    Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <95%
    Interest rate
    5.69 % p.a.
    Fixed 2 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.

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Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.


What is a home loan affordability calculator?

Mozo’s home loan affordability calculator is a budgeting tool that helps you estimate how much you could borrow on a home loan (i.e. your borrowing power).

Using your income and expenses, the calculator tests your finances and shows you how your lifestyle affects what you can afford to spend on a home.

The calculator considers typical homebuyer expenses like the initial deposit, loan term, monthly repayments, interest rates, taxes like stamp duty, and lenders’ mortgage insurance, and lays out all these costs in a simple, easy-to-read way.

All you need to do is simply plug in the numbers and go!


How does a home loan affordability calculator work?

To use Mozo’s home loan affordability calculator, you’ll need to have some basic information about your living expenses and salary on hand. The more specific you are, the better!

For instance, you will need the following:

  • Your yearly income, before tax.
  • Your living costs (including food, utilities, mobile and broadband, etc.).
  • The loan term you’re considering (usually ranges from 20 to 30 years).

Once you have this information, plug the numbers into the relevant fields. The calculator will then show you how much you can afford, with a helpful summary of hidden costs to consider.

Need help determining what your living expenses are? Use Mozo’s budget calculator to break it all down in a handy spreadsheet, or download a budgeting app to do it for you.


Pros and cons of a home loan affordability calculator

Like any financial tool, a home loan affordability calculator isn’t all-powerful. While it can be a valuable and free way to estimate your borrowing power, it also has some key limitations.

Let’s discuss the pros and cons of using a home loan affordability calculator.

Pros
  • Estimates your borrowing power. If you’re new to your home loan journey or have recently made some lifestyle changes (like a new job), the affordability calculator can give you a basic estimate of how much you can afford to borrow.

  • Lets you try multiple scenarios. The affordability calculator is flexible, meaning you can change inputs and see how different scenarios work. How does cutting back on living costs affect your borrowing power? The calculator can tell you!

  • Useful when researching home loans. Knowing how much you can afford to borrow is helpful information when researching and comparing home loans and buying houses. You know how high you can go or what you must do to get there.
Cons
  • Only gives a rough estimate. A financial calculator is only as good as the numbers you give it. But even if you plug in your exact living expenses and income, the affordability calculator can’t predict your future income/expenses. Take it just as an estimate.

  • Doesn’t consider everything lenders check, like your credit score, existing debts, or serviceability limits. Real lenders will put your home loan application through a robust and thorough vetting process to ensure you can finance your desired loan.

  • May not include all homeowning costs, like maintenance, home insurance, and any extra repayments you may make during your loan term.

These drawbacks don’t mean the home loan affordability calculator can’t be useful; they mostly just show you where it may have some blind spots.