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Loan affordability explained

Affordability is broader than a single repayment ratio. A lender may consider income, expenses, existing credit obligations, credit history and product-specific policies.

Educational guideReviewed: 28 September 2026

Why a ratio is only a model

A calculator can let you choose a repayment percentage so you can explore a scenario without pretending to know a lender's internal rule.

Existing debt matters

Other monthly obligations can reduce the amount of money available for a new repayment.

Actual lender decisions

Different lenders and products use different underwriting and affordability processes. A calculator result should not be presented as an approval.

Source and review note

Time-sensitive rules should be checked against the current official source and the applicable date. This page is intended as general educational information.

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