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)
I actively recommend Kathy and No Fuss Home loans to all my friends and family looking to finance (and refinance) their property purchases. Kathy has been a great source of support and ensures the entire financing process is stress free and easy to understand. No Fuss Home loans is truly a customer focussed business and we are lucky to have worked with them over the past 8 years.Brooke Dundas
Kathy helped me through the purchase of my first ever property. She gave helpful advice at every step of the purchase, and I honestly wouldn’t have been able to do it without her.Heath Petzold