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, you are always been a great help for me to decide about the right type of loan for my investment property as well as for my residential unit.. I rate your customer service skills very high. You also provided a comprehensive details of different bank home loan products, which was very helpful.Atul Saxena
“I met Kathy in 2007 when I bought my first property. She took time to educate me on the process of buying and provided detailed information on different types of home loans, which made my decision making easier. She was efficient, professional, knowledgeable and friendly. Since then I have bought number of other properties for which Kathy has successfully negotiated home loans for me.”Christian – Penrith