How much can you actually buy?

Bank calculators often show you the absolute maximum they'd lend. That number rarely passes APRA's serviceability buffer — lenders must test you at your rate + 3%, and brokers will submit you closer to 80% of that maximum for approval comfort. Our calculator uses the APRA-style buffer (rate + 3%) with a 30% DTI guardrail, which lands close to what you'll actually be approved for. Treat it as realistic, not optimistic.

Depends on price growth. If your target market is rising 5%+ per year, waiting 12 months to avoid a $15,000 LMI costs you $30,000+ in property appreciation. If the market is flat or falling, LMI is a dead cost and waiting wins. Run both scenarios with today's numbers and next-year's savings — the calculator shows both positions. At >5% expected growth, LMI usually pencils out; at <2% growth, it usually doesn't.

LVR is Loan-to-Value Ratio — the percentage of the property you're borrowing against. 80% LVR means 20% deposit, 95% LVR means 5%. LMI (Lenders Mortgage Insurance) is a premium charged when LVR is above 80% to protect the lender if you default. LMI rates typically jump around 85%, 90%, and 95% LVR bands. Every 5% you add to your deposit below 95% can save $3,000–$10,000 in LMI alone.

The Home Guarantee Scheme (HGS — the 5% scheme) lets eligible first home buyers borrow up to 95% without paying LMI. Eligibility: first home buyer, Australian citizen, owner-occupier, income under $125K single / $200K couple, property under the state cap ($900K NSW/VIC metro, down to $600K for regional states). Places are allocated each financial year — check hello@propautopilot.ai or nhfic.gov.au for current availability.

Gifted deposits (from parents etc.) count toward your total, but most lenders require at least 5% of the property price to be 'genuine savings' — funds accumulated in your name over 3+ months of statement history. If your entire deposit is gifted, you'll need to show 3 months of rental payments on time as substitute evidence. Don't discover this at pre-approval; know it before you ask a family member for help.

FHSS lets you make voluntary super contributions (up to $15,000/yr, $50,000 total per person) that you can later withdraw as deposit. The win: contributions are taxed at 15% (concessional rate) instead of your marginal rate (up to 45%). At 37% marginal, that's ~$11,000 in net benefit on a full $50,000 withdrawal. For a couple both contributing, the effective uplift is $20,000+. Worth doing unless you're buying within the next 12 months — the release process takes ~6 weeks.

Rule of thumb: if you're under 80% LVR at your target price, take it — you get the best rates and no LMI. If you're between 80% and 90% LVR, LMI is usually modest ($8–15K) and makes sense in a rising market. Above 90% LVR, LMI climbs sharply (3%+ of the loan) — at that point look hard at HGS eligibility, waiting 6 months for more deposit, or reducing your target price. Our four-scenario comparison above makes this decision visible.

Combined income lifts capacity substantially — usually by 75–90% of the second income (lenders don't quite double-count because both people still have living expenses). Debts also combine. Biggest gotcha: the Home Guarantee Scheme income cap is $200,000 combined, so two $110K earners miss out even though either alone would qualify. Enter combined income in the field above and the calculator handles the rest.

Meaningfully, yes. HECS/HELP reduces assessed income by the repayment rate (up to 10% at high incomes). Credit card limits count as potential debt at ~3.5% of the limit — a $20K limit reduces borrowing capacity by about $50K even if you never use it. Car loans count at the full repayment. Close unused credit cards and refinance car loans to shorter terms before applying — this alone can add $70–100K of borrowing capacity.

Your deposit is yours; you own the property. What's at risk is your ability to make repayments. Banks will usually give 3–6 months of hardship relief, then move toward forced sale if you can't resume payments. The genuine protection is the +100bps stress cushion built into this calculator — if your repayment stays serviceable at rate +1% AND you could survive 6 months on savings, you have resilience. Don't buy at the top of borrowing capacity; leave $1,000+/mo of headroom.