Borrowing Power Depends On Many Factors
If you are starting to think about applying for home loans, you are likely getting curious about your borrowing power.
To find an answer to this question, you may want to begin by running some details through a mortgage calculator.
A number of factors will affect the amount of money you can borrow, including whether you are making your application alone or with a partner, and whether you have any dependent children.
In simple terms, mortgage calculators compare your estimate incoming finances - such as income from your employment or other sources - against your other financial commitments. These can include car loans, credit cards and other payments.
You can also use this type of calculator to anticipate the length of your mortgage - 20, 25 or 30 years, for example - as well as the interest rate you anticipate paying.
However, it is important to be aware that a mortgage calculator should only be used as a general guideline for estimating how much you can borrow. These figures can vary considerably between lenders and are based on a number of factors, including current interest rates, your personal circumstances and the lending policies of different mortgage providers.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.