What Influences Your Borrowing Capacity?
Entering the world of home loans for the first time can be a challenge at first.
One of the initial things you need to understand is how much you can borrow.
This may be reliant to a degree on your borrowing capacity which can vary between different lenders and banks.
To find out a little bit more information about this, consider using the how much can I borrow online home loan calculator.
All you need to do is enter your income and living expenses details into the tool to discover your borrowing capacity.
Once you have an estimate of the amount you may be able to receive, you may want to further increase your borrowing capacity following a few of the tips below.
Pay off any personal loans you possess.
You may wish to compile a budget to increase your savings.
Together these two strategies may help to boost your chances of being granted a larger loan amount.
A mortgage broker will use your income, living expenses and credit card limits as a starting point when looking at how much you may be eligible to borrow.
Other variables to consider are the number of dependents you have and the type and size of the mortgage which you want to take out.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.