Income Shading & APRA
Stress-Test Simulator
See how credit underwriters shave your income and stress-test your borrowing capacity under the current regulatory buffer — before you apply.
Your Numbers
The Underwriting Shift
Indicative estimate only at the stressed assessment rate — not a credit quote, approval, or assessment of your actual borrowing capacity.
Walkthrough video — coming soon
A short 2-minute walkthrough showing the numbers shift as the slider moves will live here.
The Anatomy of a Mortgage Assessment
Standard front-end calculators rarely map how institutions actually assess risk. This simulator targets the two constraints that quietly move borrowing power: income shading and the APRA serviceability buffer.
Understanding Income Shading
Lenders rarely use 100% of your gross income. Under common credit policy, different income types trigger defensive reductions:
- Base PAYG income: typically assessed at 100%, subject to probation parameters.
- Variable income (overtime, commissions, bonuses): commonly shaded to 80% to smooth performance volatility across years.
- Rental income: systematically reduced to around 80% to absorb management costs and vacancy.
The Regulatory Stressed Rate
Under current APRA guidance, lenders assess your commitments not at the proposed product rate, but against a higher fallback point. Adding a 3.0% serviceability buffer to the headline rate tests whether your cash flow can sustain repayments if conditions change.
This engine is built and curated by Virginia Graham Riches, founder of Model Mortgages and host of Property & Mortgage Insights Australia. Backed by over 20 years of bespoke credit navigation, our specialist team of 5 elite brokers executes customised lending paths alongside strategic partners at Finance on the Coast.
If your scenario involves complex structures, trust distributions, medical-practice allowances, or cross-collateralised assets, baseline calculators do not tell you the true answer.
Book a Structural ReviewThis tool is general information and education only. It does not take into account your objectives, financial situation or needs, and is not financial, credit, tax or property advice. The figures are modelling and research aids, not recommendations or a quote, and do not promise borrowing capacity or loan approval. Before acting, consider your own circumstances and obtain advice from a licensed professional.
Credit assistance, where provided, is offered by Finance on the Coast — a subdivision of Model Mortgages Pty Ltd, Australian Credit Licence 387460 (ABN 82 108 681 063), a member of the Australian Financial Complaints Authority (AFCA).