What’s your borrowing power for a home loan? Before you set your heart on that waterfront mansion, use our borrowing calculator to crunch the numbers and work out how much you’ll be able to borrow - and pay back!
2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.
New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.
Read our Mozo Review to learn more about the Smart Booster Home Loan
Owner Occupier, Principal & Interest
$0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.
$0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.
Read our Mozo Review to learn more about the UHomeLoan
<60% LVR, Owner Occupier, Principal & Interest
Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.
Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.
Read our Mozo Review to learn more about the Celebrate Variable Home Loan
Owner Occupier, Principal & Interest
Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account. Comes with Visa debit card and the ability to use digital wallets; Apple and Google Pay. 25% deposit required.
Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account. Comes with Visa debit card and the ability to use digital wallets; Apple and Google Pay. 25% deposit required.
Read our Mozo Review to learn more about the Variable Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR<70%
No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.
No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.
Read our Mozo Review to learn more about the Basic Home Loan
Owner Occupier, Principal & Interest, LVR <70%
Special rate applies to home loan applications submitted by 31 October 2021. Unlimited additional repayments, free redraw, 100% offset account. 30% deposit required. Simple online application. Low Cost Home Loan winner in the Mozo Expert's Choice Awards for 2021.
Special rate applies to home loan applications submitted by 31 October 2021. Unlimited additional repayments, free redraw, 100% offset account. 30% deposit required. Simple online application. Low Cost Home Loan winner in the Mozo Expert's Choice Awards for 2021.
Read our Mozo Review to learn more about the Variable Home Loan Special
Owner Occupier, Principal & Interest, LVR <70%
Competitive low variable rates for borrowers with 30% deposit. Flexible home loan with no ongoing fees. Extra repayments and redraw available. Get a dedicated specialist for the loan application process.
Competitive low variable rates for borrowers with 30% deposit. Flexible home loan with no ongoing fees. Extra repayments and redraw available. Get a dedicated specialist for the loan application process.
Read our Mozo Review to learn more about the Prime Home Loan
Owner Occupier, Principal & Interest, <80% LVR
Lock in a competitive rate for 2 years. Only 20% deposit required. Flexible repayment options and make up to $5,000 in additional repayments annually. Refinance to BOQ by 29 August, 2021 and get $3,000 cashback(T&Cs apply).
Lock in a competitive rate for 2 years. Only 20% deposit required. Flexible repayment options and make up to $5,000 in additional repayments annually. Refinance to BOQ by 29 August, 2021 and get $3,000 cashback(T&Cs apply).
Read our Mozo Review to learn more about the Discount Fixed Rate
Owner Occupier, Principal & Interest, LVR <70%
No ongoing service fees. Free unlimited extra repayments and online redraw facility.
No ongoing service fees. Free unlimited extra repayments and online redraw facility.
Read our Mozo Review to learn more about the Discounted Home Value Loan
Owner Occupier, Principal & Interest, LVR <60%
Low rate variable home loan with optional offset. Free online redraw. No valuation fee. Purchase, refinance or equity release purposes allowed. Min 40% deposit.
Low rate variable home loan with optional offset. Free online redraw. No valuation fee. Purchase, refinance or equity release purposes allowed. Min 40% deposit.
Read our Mozo Review to learn more about the Equity Plus
Owner Occupier, Principal & Interest, LVR<80%
Competitive fixed rates across 1 to 5 year terms. No application fee or annual fee. Free extra repayments (up to $10,000 per year). Winner of Australia's Best Large Mutual Bank 2021.
Competitive fixed rates across 1 to 5 year terms. No application fee or annual fee. Free extra repayments (up to $10,000 per year). Winner of Australia's Best Large Mutual Bank 2021.
Read our Mozo Review to learn more about the Fixed Rate Home Loan
Owner Occupier, Principal & Interest
Lock in a low fixed rate or choose to split your loan between fixed and variable. Insurance discounts and no fee credit card or zero fee personal loan available. $2,000 cashback offer for home loans over $250k with at least a 20% deposit when refinancing to Newcastle Permanent.
Lock in a low fixed rate or choose to split your loan between fixed and variable. Insurance discounts and no fee credit card or zero fee personal loan available. $2,000 cashback offer for home loans over $250k with at least a 20% deposit when refinancing to Newcastle Permanent.
Read our Mozo Review to learn more about the Special Fixed Rate Home Loan
Owner Occupier, Principal & Interest
Fast, easy to apply and no ongoing fees. Choose between weekly, fortnightly or monthly repayments. 1 year fixed rates are for new Owner Occupier Principal & Interest loans.
Fast, easy to apply and no ongoing fees. Choose between weekly, fortnightly or monthly repayments. 1 year fixed rates are for new Owner Occupier Principal & Interest loans.
Read our Mozo Review to learn more about the UHomeLoan
Owner Occupier, Principal & Interest, LVR<80%
This home loan from Bank First offers owner occupiers a competitive variable rate, plus a number of additional features. Enjoy flexible repayments, no ongoing fees and our low variable rate.
This home loan from Bank First offers owner occupiers a competitive variable rate, plus a number of additional features. Enjoy flexible repayments, no ongoing fees and our low variable rate.
Read our Mozo Review to learn more about the First Rate Home Loan
Owner Occupier, LVR<60%, Principal & Interest
Competitive low variable rate. No application or account management fees. Flexibility to split your loan and set different repayment types. Fee free withdrawals of your savings.
Competitive low variable rate. No application or account management fees. Flexibility to split your loan and set different repayment types. Fee free withdrawals of your savings.
Read our Mozo Review to learn more about the Basic Home Loan
Owner Occupier, Principal & Interest, LVR <80%
Super low fixed rate and only 20% deposit required. Optional 100% offset account. Free extra repayments and redraw facility. Flexible repayment schedule.
Super low fixed rate and only 20% deposit required. Optional 100% offset account. Free extra repayments and redraw facility. Flexible repayment schedule.
Read our Mozo Review to learn more about the Well Balanced Fixed
70-80% LVR, Owner Occupier, Principal & Interest
Fast online application with no fees. Free extra repayments and redraw facility. Min 20% deposit. Athena automatically lowers the rate as the loan is paid down. Winner of three Mozo Expert's Choice Awards for 2021.
Fast online application with no fees. Free extra repayments and redraw facility. Min 20% deposit. Athena automatically lowers the rate as the loan is paid down. Winner of three Mozo Expert's Choice Awards for 2021.
Read our Mozo Review to learn more about the Liberate Variable Home Loan
Owner Occupier
Great low rate on investment loans when you package with your owner-occupied loan.
Great low rate on investment loans when you package with your owner-occupied loan.
Read our Mozo Review to learn more about the Green Home Loan
Owner Occupier, Principal & Interest, <80% LVR
Competitive low fixed rates for owner occupiers. No monthly account keeping or loan establishment fees. 20% deposit required. Get $3K cash when you refinance to a Suncorp Bank home loan of $750K+ with LVR <= 90%. Apply by 31/08/21, settle by 31/08/21. (T&Cs apply).
Competitive low fixed rates for owner occupiers. No monthly account keeping or loan establishment fees. 20% deposit required. Get $3K cash when you refinance to a Suncorp Bank home loan of $750K+ with LVR <= 90%. Apply by 31/08/21, settle by 31/08/21. (T&Cs apply).
Read our Mozo Review to learn more about the Fixed Home Loan Special Offer
Owner Occupier, Interest Only
Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account. Comes with Visa debit card and the ability to use digital wallets; Apple and Google Pay. 25% deposit required.
Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account. Comes with Visa debit card and the ability to use digital wallets; Apple and Google Pay. 25% deposit required.
Read our Mozo Review to learn more about the Variable Home Loan
Owner Occupier, Principal & Interest
Low-rate variable home loan that could save you thousands. No ongoing fees. Unlimited extra repayments and free redraws. Maximum borrowing $1 million and at least a 20% deposit required.
Low-rate variable home loan that could save you thousands. No ongoing fees. Unlimited extra repayments and free redraws. Maximum borrowing $1 million and at least a 20% deposit required.
Read our Mozo Review to learn more about the Smart Home Loan 80
Owner Occupier, Principal & Interest
No annual or ongoing monthly fees. Fee free extra repayments. Free redraw facility.
No annual or ongoing monthly fees. Fee free extra repayments. Free redraw facility.
Read our Mozo Review to learn more about the Fixed Rate Loan
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.
Figuring out roughly what a bank or credit union will lend you for a home loan is the first step in the home buying process. Afterall, you don’t want to find the perfect home only to find out that you won’t be able to get the money to fund purchasing it. To help you get an estimate of how much you’ll be able to borrow plug a few of your personal finance facts into our home loan borrowing calculator above. It will give you a good idea of how much you’re able to borrow and successfully pay back on your home loan each month based on your budget so that when it comes time to shortlist the properties in your desired Aussie neighbourhood you have a good idea that you’ll be approved for a loan.
All banks and home lenders will want to make sure that if they loan you money for a new home that you’ll be able to pay it back. Mortgage stress is a real issue and to make sure that you don’t fall victim to this, you’ll want to be really upfront about your income and your liabilities. The main factors that determine your borrowing power are:
Your income will be an important factor when determining your home loan borrowing muscle. If you’re earning a single income you might not have access to as much money as when you’re buying as part of a couple.
Living expenses like your grocery and energy bills are also an important part of the home loan borrowing power formula. The more streamlined you can make these, the more you’ll be able to manage in terms of monthly mortgage repayments. While we give you the option to use default living expenses, we recommend entering your own customised figures so that you will get a more realistic idea of how much you’ll be able to borrow on your home loan.
Do you have other monthly repayments like a car or personal loan? These will also impact your borrowing power for a home loan so it’s a good idea to try and get these as low as possible. And if you have any debts like a credit card bill, make sure that you also include this.
While the standard mortgage term is 25 years, most lenders will have mortgages up to 30 years. The advantage of opting for a shorter home loan term is that you incur less interest over the life of the loan, but this could mean your monthly repayments are a little more steep.
The reality is that over a 30 year mortgage there will be periods when the interest rate on your home loan changes and to protect themselves, banks want to know that if rates do go up, you will still be able to cover your monthly mortgage repayments. It’s also good for your peace of mind to know that if rates jump you will be able to pay back your loan without too much difficulty or at least have an idea of how much extra you will need to find in your budget so that you can cut back on other areas if needed. So have a play around with the rate change functionality of our calculator to get a sense of how much you’d need if there was a rate rise.
In addition to the amount your home loan lender will let you borrow, you’ll also need a home deposit saved up to get your foot in the door of your first property. In Australia, it’s recommended that you have a 20% deposit, but some home loan providers will let you borrow with less as long as you pay Lenders Mortgage Insurance.
LVR stands for loan to value ratio, which is all about how much you’ve saved up for your home loan deposit. Generally, the lower your LVR, the better you’re borrowing power will be. In Australia, the preferred LVR is anything less than 80% - which means you should be aiming for a deposit of 20% or more of the value of your dream home. If that seems like too much of a hurdle, there are lenders who offer low deposit home loans, for LVRs up to 95%. But keep in mind that if you opt for one of these offers, you’ll have to take into account the cost of lenders mortgage insurance.
The more you borrow, the bigger your repayments will be! So even if you qualify for a whopping home loan, ask yourself if you really need it and if the repayments are in line with your monthly budget and lifestyle. A good rule of thumb is to compare the repayment amount with your current rent. If they’re similar figures, you should be able to handle the repayments pretty easily. But remember to plan for the possibility of a rate rise, as shown on the calculator - it’s best to have a financial buffer, just in case.
Another big cost to consider when looking for a home loan is stamp duty. The government can sometimes charge you in the tens of thousands of dollars, which might just about break your budget. If you - or your wallet - don’t like the idea of paying it as a lump sum, you can also opt to add it to the price of your monthly repayments. Find out how much you might be up for in stamp duty with our handy calculator.
To boost your borrowing power before you apply for a home loan, get a copy of your credit report and go over it with a fine tooth comb. Any mistakes or incorrect details could be stopping you from being approved for a loan but keep in mind that, under the new comprehensive credit reporting legislation lenders will also be looking at your positive credit repayments.
Got a credit card debt hanging over you? It could be damaging your chances of getting a home loan. Check out a balance transfer deal and blast credit card debt to get back on track toward a home loan.
Having a regular savings plan will make you look reliable and money savvy. Plus, setting up good savings habits will help you build up a home loan deposit and lower your LVR which will get you a better deal on your home loan.
For more helpful information on how to get your foot in the door of your dream home or fully finance your next investment property, check out our comprehensive range of home loan guides.