Understanding Your Borrowing Power
When you first start searching for home loans, it is easy to get a bit overwhelmed by all the different mortgage products available on the market.
Finding out the extent of your borrowing capacity is an important first step on the way to choosing the best mortgage for you, and this can be determined in a few different ways.
A mortgage broker can talk to you about how your current income and living expenses may affect your borrowing power, and help to determine the best home loan for you.
How much you are eligible to borrow will also depend on the size of the deposit that you have saved.
Some of the criteria a mortgage broker will use to find out what your borrowing capacity is are your current credit card limits, your income, the size of your deposit compared with the size of your mortgage and the type of home loan you choose, including fixed and variable rates and other features.
Another quick way to find out how much you could borrow is to use an online home loan calculator.
The calculator can also give you a rough idea of what your payments would be on a monthly basis.
However you should be aware that this will give you an estimated figure - to get more specific amount you should contact a mortgage broker.
For more detailed information on your situation, talk to a Loan Market mortgage broker today.