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)
“Kathy Dundas has helped me a number of times with upgrading, managing my home mortgage. I have found her to be cortious, efficient and knowlegable. Yes, would recommend her to look after you.”Paul - Strathfield
Kathy has helped refinance my home loan previously and has now helped me sort out an investment property loan. Kathy keeps me up to date with interest rate trends and deals every month with her monthly emails. I have found her to be very professional and very knowledgeable in every aspect of mortgage broking. She is more than willing to pass on information about her own investment strategies and has provided me with a contact to source my first investment property. She makes investment easy and is easy to communicate with. I would highly recommend Kathy to anyone who is looking to obtain or refinance be it for your home or investment.Dougal Brown