Why a range and not one number
Every lender works out borrowing power its own way: how much overtime and allowance income it counts, what living-expense benchmark it uses, how it treats credit card limits and what floor rate it tests you at. On the same payslips, two lenders can be tens of thousands of dollars apart. So this estimate shows a conservative end and a generous end.
Roster and mining income
Base pay is straightforward. Overtime, shift loadings and site allowances are where lenders differ. Some count most regular overtime after a few months; others discount it or want a longer history. Enter base pay, overtime and allowances separately so you can see how much of the range comes from them. Our mining and FIFO home loans page and the guide how much can I borrow on a roster explain more.
The 3% buffer
Lenders check you could still make repayments if rates rose. The Australian Prudential Regulation Authority (APRA) expects them to test at least 3 percentage points above the loan's rate, so this estimate does the same with the rate you enter.
Common questions
Is this how much a lender will lend me?
No. It's a rough range from the figures you entered and our assumptions. Lenders apply their own policies, benchmarks and checks. A broker can work out a lender-accurate figure.
Do lenders count overtime and allowances?
Most count some overtime. A common approach is about 80% of regular overtime, and some count up to 100% with a steady history. Allowances vary from not counted at all to fully counted, depending on the lender and the evidence.
Why do credit card limits matter if I pay them off?
Lenders assess the limit as if it could be fully used, usually as a monthly commitment of around 3% to 3.8% of the limit. Reducing unused limits can lift borrowing power.