Borrowing capacity

How much you can borrow

Before you begin searching for a property, you will need to know how much you can spend on your new house and where you can afford to live.

Your borrowing power varies between banks and lenders because they use various methods for evaluating your ability and have different lending criteria. Many borrowers take a step further and provide their loans with pre-approvals. That is why you should opt for our best refinance loan service.

Knowledge of your borrowing power or borrowing capacity is a good starting point when you buy a property because it gives you an idea of how much you can buy. Knowing how much you can afford to borrow helps you stay on your budget when you look for a property. Use this calculator borrowing to calculate your borrowing capacity and choose our refinance home loan service.

As a guide, you can consider how much you can borrow from banks and lenders:

  • Limits on credit card
  • Revenue and income types, e.g., casual, contract, full time
  • Loan size compared to the value of the property
  • Number and situation of employees
  • Loan type
  • general cost of living, and
  • Existing position of the asset (including the size of your deposit)

Tips to increase your borrowing capacity:

  • Close any credit card or overdraft facilities and pay off
  • Do the amounts and keep the budget to enhance your deposit and savings history
  • Pay off remaining term debts