Home Loan Calculators

Your borrowing capacity or borrowing power is an estimate of the amount you could borrow based on your current financial situation. Understanding your borrowing capacity is often the first step in the home buying journey. It gives you an idea of the amount you might be able to borrow when you’re looking to buy a home.

Your borrowing capacity is generally calculated as your net income (income after tax) minus your expenses. These expenses may include normal household costs like food and transport, any current loan repayments, and other financial commitments, such as school fees. The more accurately you can enter these details into the calculator, the more realistic your estimated borrowing capacity calculation could be.

The calculations are estimates, based only upon the information you provide. The borrowing capacity estimate does not constitute an application or approval. No loan fees or charges have been factored into the calculations. 

You could increase your borrowing capacity by increasing your income, lowering your expenses, or improving your credit history   .

Other factors influencing your borrowing capacity include the loan type, interest rate, and loan term. For more information, read our article “How much can I borrow for a home loan”.

When a lender reviews your home loan application, there’s no one-size-fits-all formula for determining how much you can borrow. How much you earn is only one factor. Your expenses, credit history, any other assets or debts, and the size of your deposit are all important factors considered for a home loan approval.

Yes. Your relationship status will impact your borrowing power. If you share income, expenses, debts, and assets with a partner and you’re applying for a home loan, your borrowing capacity will be calculated according to your shared finances. 

Interest rates fluctuate based on economic conditions, inflation and monetary policy set by the RBA. Keeping an eye on RBA announcements and financial forecasts can help you make informed decisions about your loan.

The Reserve Bank of Australia (RBA) sets the cash rate, which influences interest rates offered by banks. When the cash rate changes:

• variable home loan rates may go up or down
• fixed home loan rates remain unchanged for the term of the fixed period, however, the financial institution may change their current rates for new borrowers.

Keeping track of the RBA’s decisions can help you decide when to refinance or lock in a fixed rate.

Home loan repayments are influenced by several factors, including the loan’s:

• current balance
• term (e.g. 20 or 30 years)
• interest rate (fixed or variable)
• repayment type (principal & interest or interest-only).
• linked offset account/sub-account balances (if eligible). 

If you have a variable interest rate, your repayment amount may change over time as market interest rates fluctuate.

Your mortgage repayment consists of two parts:

• principal: the amount borrowed

• interest: the cost of borrowing. 

At Suncorp Bank, home loan interest is calculated daily and charged on your monthly repayment due date. We multiply the remaining balance on your loan by your interest rate and divide it by 365 to determine daily interest. You can use the calculator above to get an understanding of how much interest you could pay on your loan over time.

Since interest rates can change, the calculator provides an estimate based on current rates but does not include all potential fees and charges. If a variable rate loan is selected, repayments may fluctuate over time.

Yes. By making extra repayments you can help pay off your mortgage sooner and reduce your total interest paid. Keep in mind:

• fixed-rate loans may have limits on extra repayments

• variable-rate loans often allow unlimited extra repayments. 

Another way to reduce interest on your variable home loan is by using an offset account. An offset account may also help to reduce the total cost of repaying your loan. An offset account is a bank account that is linked to your variable home loan. The money in it 'offsets' your variable home loan balance, reducing the total interest you need to pay.

Principal & interest (P&I): You repay both the loan amount and interest, which reduces your total loan balance over time. 

Interest-only repayments (requires bank approval) If you are approved, you only pay interest for a set period, resulting in lower repayments initially. However, your repayments will increase later when you start paying off the principal and interest. 

Interest-only loans may also have borrowing restrictions or additional conditions, so it’s important to consider your long-term financial goals.

Finding the right home loan depends on your situation. As a start, you could:

• compare loan types such as variable and fixed rate loans
• compare loan features like offset accounts, redraw facilities and making extra repayments
• speak with a home lending specialist for expert advice

Want to crunch the numbers? Try our mortgage repayment calculator can help you to get an indication of what your repayments might look like.