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. Your borrowing power will vary between banks and lenders because they use different methods to assess your capacity and have different lending criteria. Many borrowers go a step further and give pre-approvals on their loans.
Knowing your borrowing power or borrowing capacity is a good place to start when purchasing a property as it will give you an idea of how much you can afford to borrow. Knowing how much you can afford to borrow will help you stick to your budget, when searching for a property.
For an obligation free 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 DDI: 09 390 0083 OR complete the form below.
One of the most frequently asked questions in home finance is – how much can I borrow? Your borrowing power will give you a good idea of how much you can borrow to purchase a property. As a guideline, when determining how much you can borrow banks and lenders will look at:
