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Creditcrest Capacity

Serviceability and borrowing power, on an invented statement. Use a real one.

See the arithmetic.

Goes in
A statement reading and a proposed loan
Comes out
Serviceability and how much could be borrowed
Holds the line
The binding constraint is named
Borrowing power
$19,900serviceability binds
Left over a month
$119.82
Assessed income
$5,026.67
Assessment rate
15.00%
Debt to income
0.19 times

Borrowing power, and which constraint binds

ConstraintWhat it isLargest loan
Serviceability binds The largest loan that still leaves $0.00 a month over, at the assessed rate $19,900
Debt to income The largest loan that keeps total debt below 6 times gross income, on $0 of other debt and $78,000 of gross income — 5.99 times at that figure $467,600
The one that binds is serviceability $19,900

At the same rate, the same term and the same policy, the loan this borrower comes out at is $19,900, repaying $473.42 a month and leaving $3.25. The serviceability figure is found by running the same assessment at a succession of principals until it stops fitting, rather than by a formula, so it and the ledger above can never disagree.

Every step of the arithmetic
StepWhatWhy that figureA month
income DIRECT CREDIT 049211 ACME LOGISTICS PAYROLL Counted in full $5,026.67
what went into this line

Counted in full.

Verified Monthly
$5,026.67
Rhythm
fortnightly
Payments
13
Shading
100.00%
Variable
no
DateDescriptionAmount
5 March 2026DIRECT CREDIT 049211 ACME LOGISTICS PAYROLL $2,200.00
19 March 2026DIRECT CREDIT 049211 ACME LOGISTICS PAYROLL $2,320.00
2 April 2026DIRECT CREDIT 049211 ACME LOGISTICS PAYROLL $2,440.00
16 April 2026DIRECT CREDIT 049211 ACME LOGISTICS PAYROLL $2,560.00
30 April 2026DIRECT CREDIT 049211 ACME LOGISTICS PAYROLL $2,200.00
14 May 2026DIRECT CREDIT 049211 ACME LOGISTICS PAYROLL $2,320.00
28 May 2026DIRECT CREDIT 049211 ACME LOGISTICS PAYROLL $2,440.00
11 June 2026DIRECT CREDIT 049211 ACME LOGISTICS PAYROLL $2,560.00
25 June 2026DIRECT CREDIT 049211 ACME LOGISTICS PAYROLL $2,200.00
9 July 2026DIRECT CREDIT 049211 ACME LOGISTICS PAYROLL $2,320.00
23 July 2026DIRECT CREDIT 049211 ACME LOGISTICS PAYROLL $2,440.00
6 August 2026DIRECT CREDIT 049211 ACME LOGISTICS PAYROLL $2,560.00
20 August 2026DIRECT CREDIT 049211 ACME LOGISTICS PAYROLL $2,200.00
expenses Living expenses The highest of the available figures, which here was the lender’s benchmark for this household −$2,400.00
what went into this line

The highest of the available figures, which here was the lender’s benchmark for this household.

Declared by the applicant
$0.00
The lender’s benchmark for this household
$2,400.00
Observed on the statement
$1,510.62
commitment RENT HARCOURTS ELSTERNWICK REF 88210 Found on the statement, 6 payments monthly −$2,150.00
what went into this line

Found on the statement, 6 payments monthly.

Monthly
$2,150.00
Category
Rent
DateDescriptionAmount
1 March 2026RENT HARCOURTS ELSTERNWICK REF 88210 −$2,150.00
1 April 2026RENT HARCOURTS ELSTERNWICK REF 88210 −$2,150.00
2 May 2026RENT HARCOURTS ELSTERNWICK REF 88210 −$2,150.00
31 May 2026RENT HARCOURTS ELSTERNWICK REF 88210 −$2,150.00
1 July 2026RENT HARCOURTS ELSTERNWICK REF 88210 −$2,150.00
2 August 2026RENT HARCOURTS ELSTERNWICK REF 88210 −$2,150.00
proposed The proposed loan Assessed at 15.00% — the offered rate plus a 3.0% buffer, with a 5.25% floor −$356.85
what went into this line

Assessed at 15.00% — the offered rate plus a 3.0% buffer, with a 5.25% floor.

Principal
$15,000.00
Offered Rate
12.00%
Assessed Rate
15.00%
Years
5
Repayment At Offered Rate
$333.67
Left over each month $119.82

Debt to income

Everything owed, over gross income before tax. The definition is not universal — lenders differ on whether a study loan is debt and on whether a card counts at its limit or its balance — so every row below carries the rule that put it there, and a reader who counts it differently can say which row they would change.

What was counted as debt

StepWhatWhy that figureBalance
debt The proposed loan The loan being applied for, counted at its full principal $15,000
what went into this line

The loan being applied for, counted at its full principal.

Principal
$15,000.00
not a debt RENT HARCOURTS ELSTERNWICK REF 88210 Rent is an obligation but it is not a borrowing, so it is counted against the monthly surplus above and forms no part of this ratio $0
what went into this line

Rent is an obligation but it is not a borrowing, so it is counted against the monthly surplus above and forms no part of this ratio.

Monthly
$2,150.00
Category
Rent
DateDescriptionAmount
1 March 2026RENT HARCOURTS ELSTERNWICK REF 88210 −$2,150.00
1 April 2026RENT HARCOURTS ELSTERNWICK REF 88210 −$2,150.00
2 May 2026RENT HARCOURTS ELSTERNWICK REF 88210 −$2,150.00
31 May 2026RENT HARCOURTS ELSTERNWICK REF 88210 −$2,150.00
1 July 2026RENT HARCOURTS ELSTERNWICK REF 88210 −$2,150.00
2 August 2026RENT HARCOURTS ELSTERNWICK REF 88210 −$2,150.00
Total debt $15,000

What was counted as income

StepWhatWhy that figureA year
income Gross annual income As supplied, before tax. It is not read off the statement: what arrives in an account is already after tax and after anything salary-sacrificed, and this ratio is defined on the gross figure $78,000
what went into this line

As supplied, before tax. It is not read off the statement: what arrives in an account is already after tax and after anything salary-sacrificed, and this ratio is defined on the gross figure.

Gross Annual Income
$78,000.00
Gross Monthly
$6,500.00
Net Monthly On The Statement
$5,026.67
Total debt
$15,000
Gross income a year
$78,000
Debt to income
0.19 times
Before 6 times
$453,000of further debt at this income
Below 6 times

Total debt of $15,000 against gross income of $78,000 is 0.19 times, which is below 6. That is where this file sits in a lender's quarterly count, and it is not a statement about whether this borrower may borrow.

What the 6 means, in full. The cap is on the lender and not on this borrower. Since February 2026 an authorised deposit-taking institution may write no more than 20 per cent of its new mortgage lending at a debt-to-income ratio of 6 or more, measured each quarter, with owner-occupier and investor lending counted separately. A borrower at 6 or above is not prohibited from borrowing and has not failed a test: that application is competing for a fifth of a lender's quarter rather than for the whole of it. Whether a particular lender has room left in the quarter it is currently in is that lender's own position, and nothing here can know it.

No lender's own cap is in this figure. Some publish one — eight times is a published figure at one lender — and most publish nothing. Those are policies rather than arithmetic, they differ between lenders and they change without notice, so they are not written into this engine. A lender's own cap belongs in Creditcrest Decisioning as policy text that carries a date and a hash and can be replayed against the version in force on the day a decision was made.

Not settled

No minimum surplus was given, so the borrowing capacity above is the largest loan that leaves exactly nothing over each month. That is arithmetically true and nobody should lend on it: put the lender’s own surplus floor in the field and the figure becomes one somebody could use.

Rent of $2,150 a month has been counted as an ongoing commitment. If the applicant will live in the property being bought, that rent stops and this assessment is understating the surplus by that amount. Pass it in `retiring` if so.