One of the first questions buyers ask is: How much can I borrow?
Online calculators provide estimates, but lenders assess far more than just your income.
What Determines How Much You Can Borrow?
1. Income
Salary, bonuses, commissions, rental income, and self-employed income (usually averaged).
2. Living Expenses
Lenders assess both your declared expenses and benchmark minimum living expense standards.
3. Existing Debts & Credit Limits
Credit cards (including unused limits), personal loans, car loans and buy now, pay later accounts all impact borrowing capacity.
4. Interest Rate Buffers
Banks assess your loan at a higher rate than today’s interest rate to ensure you can manage repayments if rates rise.
Why Online Calculators Are Often Wrong
They use generic assumptions, don’t factor in lender policy differences, and don’t assess your specific financial behaviour.
How a Mortgage Broker Can Help
A broker can identify which lender will assess your situation most favourably and suggest strategic changes to improve borrowing capacity before applying.
Final Thoughts
Borrowing power isn’t a single number — it’s a range. Getting a tailored assessment ensures you buy with clarity and confidence rather than guesswork.