One of the first questions people ask is, “How much can I borrow?” The answer depends on more than just your income.
What Do Lenders Consider?
Your Income
Your salary, wages, bonuses, and in some cases rental income or government benefits may all be taken into account.
Your Expenses
Lenders review your regular living costs, including groceries, transport, insurance, utilities, and entertainment.
Existing Debts
Credit cards, personal loans, car finance, and buy-now-pay-later services can reduce your borrowing power.
Your Deposit
Generally, the larger your deposit, the more options you may have available.
Your Credit History
A good repayment record helps demonstrate that you can manage debt responsibly.
How Can You Increase Your Borrowing Capacity?
- Pay down existing debts.
- Reduce credit card limits you do not need.
- Avoid taking out new loans before applying.
- Save a larger deposit if possible.
- Keep a consistent employment history.
A mortgage broker can compare lenders and help you understand which loan products may best suit your circumstances.
