What is Serviceability?
Serviceability is a lender's assessment of whether you can comfortably afford your loan repayments. Considers gross income, existing debts, household expenses (measured against HEM benchmarks), the new loan repayment at the assessment rate, and any dependants.
Why it matters for you
Serviceability varies significantly between lenders — the same applicant can have $200K+ difference in assessed borrowing capacity across the panel. Why? Different HEM floors, different treatment of HECS, novated leases, share-based income, and investment property expenses. This is the single biggest driver of "which lender" matters.
Last updated: April 2026