How is my home loan borrowing capacity impacted.

Your income

While assessing your home loan application the bank will look at your employment status, e.g. how long have you been in the job and the annual income.

We have different ways to determine your income, e.g. banks only consider 80% of the rental income.

Your commitments

Banks will also look at any outstanding debts, credit cards and expenses or other commitments that you may have and this could negatively impact your borrowings.

Your living expenses

Lenders will want to review your outgoing living expenses and will consider things like rent, school and childcare fees, phone contracts and utility bills. If you are purchasing your first home to live in, then the rental expense is not considered.

Your credit history

If your credit history has been negatively impact for the debt of more than $500, many of the lenders will be difficult to accept the application.

But there are lenders that will be willing to consider your application, depending upon the reason for credit ratings going down.

You can call us on 0431515916 to discuss more on this.

Your existing assets

Your deposit
Cash remains ‘King’ when it comes to buying property, and the more money you have in the bank as savings, the easier it generally becomes to borrow.

If you already own a property, you may also be able to use equity in your home. Call us on 0431515916 to find out more about using the equity to buy.

In you want to know your existing borrowing capacity, it’s easy, just call us on 0431515916, always happy to chat.