Borrowing capacity

Your borrowing capacity is something you need to know before you commence your property search as it tells you how much you can spend on your new home and where you can afford to live. Many borrowers go a step further and pre-approve their loan prior to commencing their property search to confirm how much they can borrow.

Your maximum borrowing capacity will vary from lender to lender because lenders use different methods of assessment and different lending criteria. Your personal circumstances and your income will also play a crucial role on the amount that you will be able to borrow.

Find out your maximum borrowing capacity

To have a more precise assessment of your borrowing capacity or to talk to a mortgage broker about the home finance options that are in your best interest, call us on 13 LOAN (+61 2 9249 3739) or complete the form on this page.

* First Name:
* Last Name:
* Best contact number:
* Email:
* Postcode:
Joint application:	-- Please select -- Yes No
Number of dependants:	-- Please select -- 0 1 2 3 4 5 6
* Net salary 1:
* Net salary type:	-- Please select -- per week per fortnight per month per year
Net salary 2:
Net salary 2 type:	-- Please select -- per week per fortnight per month per year
Other net income:
Monthly car loan payments:
Do you have credit cards?	-- Please select -- Yes No
Do you have other payments?
Other payments type:	-- Please select -- per week per fortnight per month per year
What are you borrowing for?	-- Please select -- New Home Investment Property Renovate Refinance Consolidate Debt Commercial Loan Business Loan
Interest rate information:	-- Please select -- Latest Rates Fixed Rates Higher Loan Rates Fixed vs Variable Comparative Rates
General information:	-- Please select -- New Products Available Reviewing Options First Home Buyer
Your current position:	-- Please select -- Buying Now 3 months 3-6 months 6 months Just checking my options
Deposit in hand:
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How do lenders assess my borrowing capacity?

A lender will typically review all your income sources and expenditure, add a margin, and then calculate your uncommitted monthly income. This is the most important factor to most lenders. The greater it is, the larger your borrowing capacity will be.

Basic criteria used to determine how much you can borrow may include:

• Loan to Value Ratio
• Income and types of income, e.g. casual, contract, full-time
• Other loans
• Credit card limits
• Loan terms
• Number of dependents and their situation
• Type of Loan
• Tax rates
• Rental income
• General living expenses, and
• Existing asset position, including the size of your deposit.

They may also look at any property currently or previously owned and the type of property you are looking at (eg. house, apartment).

Tips for increasing your borrowing capacity

You may be able to increase your borrowing capacity by employing one or more of the following measures:

• Pay off outstanding term debts (eg. personal loans)
• Pay off and close any credit card, overdraft or line of credit facilities
• Consider reducing the limit of any facility you maintain
• Work out and stick to a budget to improve your deposit and savings history

calculate your borrowing capacity

Check out our How Much Can I Borrow calculator for a rough assessment of your borrowing capacity. For a more detailed assessment of your situation or to find the loan that is in your best interest, talk to your local mortgage broker and we will return your enquiry within 2 business hours. Or call us at any time on 13 LOAN or direct on +61 2 9249 3739.