How Much Can I Borrow?

‘How Much Can I Borrow’ Calculator

Disclaimer: The ‘How much can I borrow?’ calculator takes your income and expenditure and provides an accurate indication of how much you can afford to borrow.It combines the exact method used by the serviceability calculators of three banks to find out whether you’d be eligible for a home loan.

Disclaimer: The ‘How much can I borrow?’ calculator takes your income and expenditure and provides an accurate indication of how much you can afford to borrow.It combines the exact method used by the serviceability calculators of three banks to find out whether you’d be eligible for a home loan.

What Is Borrowing Power?

Borrowing power is essentially your financial capacity to get approved for a home loan. It signifies the maximum amount of money a lender is willing to lend you.

Before you get approved for a home loan, lenders will thoroughly assess your financial situation to ensure you can comfortably manage repayments. This assessment considers various factors, such as your income, expenses, existing debts, credit history and assets.

The lender’s assessment will determine your borrowing power, giving you a clear idea of the price range within which you can search for properties.

How Our ‘How Much Can I Borrow’ Calculator Works

Our borrowing power calculator takes a very different approach to helping you find the most suitable loan:

• It compares three banks in one go.
• It uses the actual calculation methods the lenders’ credit departments use.
• It can change the loan structure to work out your maximum borrowing power.
• It takes into account advanced features such as fixed rates, negative gearing, interest-only periods and your family size.

In fact, the borrowing power calculator is so accurate that it even copies small errors in the tax rates used by some of the banks. If you’d like to get the best mortgage deal then please fill in our free online assessment form or call us on 1300 889 743 and one of our mortgage brokers will provide you with an obligation-free quote.

We have extensive knowledge of lender serviceability criteria, so we can provide you with an accurate assessment of how much you can afford to borrow.

Factors That Affect Borrowing Power

Understanding the factors that shape your ability to get approved for a home loan is key. Various factors come into play, from your income to existing debts to your credit history and assets.

• Income: A higher and more consistent income could enable you to borrow more.
• Debts and financial commitments: Large existing debts can decrease borrowing power.
• Living expenses: High expenses may signal instability to lenders, lowering your borrowing power.
• Credit history: A good credit history indicates reliability and may increase borrowing power.
• Assets: Tangible and intangible assets add to credibility and borrowing capacity.
• Deposit size: Larger deposits reduce lender risk, meaning you may be able to borrow more.
• Home loan type, term and interest rate: Lower fees and interest rates increase borrowing power.
• Value of the property: Property valuation influences the maximum loan amount.

Before You Buy: The Importance of Borrowing Power

The Secrets Of Borrowing Power And Maximising Your Mortgage Potential



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Disclaimer

Whilst we try to be as accurate as possible, the results shown in the ‘How much can I borrow?’ calculator are estimates only. They are provided for illustrative purposes only and are based on the information provided. They do not constitute a loan approval, quote or offer to lend. The calculator is not intended to be relied upon for the purposes of making a decision in relation to a financial product. The calculator does not assume changes in the cost of living over time or your actual living expenses, which may differ from those the banks calculate. Code errors or delays with updating the calculator may cause your result to be inaccurate. You should obtain a formal approval from a lender before making any offer on a property or any financial decision that relies on a new home loan.