Your borrowing capacity will vary between banks and lenders because they all use different methods to assess your capacity and all have different lending criteria.
One of the most frequently asked questions in home finance is – how much can I borrow?
Your borrowing power will give you a good idea of how much you can borrow to purchase a property. As a guideline, when determining how much you can borrow banks and lenders will look at:
- Income and types of income e.g. casual, contract, full-time
- The size of the loan compared to the property value
- Number of dependents and their situation
- Credit card limits
- Type of loan
- General living expenses
- Current savings to be used as a deposit (if purchasing), and
- Existing asset position (including the size of your deposit)
For a detailed assessment of your borrowing capacity contact us at and we will provide you with a personalised indication of your capacity.
Tips on how to increase your Borrowing Power
- Pay off and close or reduce limits on any credit card or overdraft facilities
- Put a budget in place and stick to it. This will help you to improve your deposit and savings history
- Pay off any outstanding term debts (e.g. car/personal loans)
Our recent dealings with Kathy Dundas from No Fuss Home Loans, who secured us a home loan for our recently purchased property, were as the name suggests, no fuss. Kathy is very professional in her approach and she made the entire process easy for us. Kathy came to our home and helped us to fill out the paperwork, which took much of the stress out of the process. She kept in contact with us at all times and she was able to secure the loan for us in a timely manner. Kathy is delightful to deal with and we would highly recommend her services to anyone needing a loan.Gary and Maureen Simpson
Choosing the right home loan can be a harrowing and difficult process, No Fuss Home Loans produced a slick and efficient solution to my fiscal needs in a very short time frame. The quality of the advice was excellent and transparent and favoured my situation as opposed to gaining the maximum return for No Fuss. I was so impressed that I have referred Kathy at every opportunity to friends and colleagues in need of advice. The most important factor for me was the after sales service where Kathy went above and beyond to secure the facets of the deal offered at the start. I always felt I was in capable hands who genuinely took my business seriously, a very admirable trait.Rob Helliwell