Serviceability Buffer Calculator
Estimate the repayment lenders use to assess your borrowing capacity by applying a serviceability buffer on top of the actual interest rate.
Your results
Calculation breakdown
- Assessment rate
- actual rate + serviceability buffer
Worked example
A $500,000 loan at 6% assessed with a 3-point buffer uses a 9% repayment of about $4,023 a month to test your borrowing capacity.
Assumptions
- The buffer percentage is set individually by each lender's own credit policy; enter the figure quoted by your lender or broker.
How this calculator works
This calculator applies an editable serviceability buffer to your loan's interest rate to estimate the higher assessment repayment lenders typically use when deciding how much you can borrow, reflecting prudential guidance to lend responsibly.
Frequently asked questions
Why do lenders assess loans at a higher rate than I will actually pay?
Lenders build in a buffer so borrowers can still service the loan if rates rise, reducing the risk of default across the lending market.
Is the buffer the same for every lender?
No, while regulatory guidance encourages a buffer, the exact figure each lender applies is set by its own credit policy, so enter the figure quoted by your lender for accuracy.
Does a higher buffer reduce how much I can borrow?
Yes, a larger buffer increases the assessment repayment, which reduces the maximum loan amount a lender is likely to approve for a given income.
Results are estimates only and are not financial, tax, legal or credit advice.