Determining how much you may be able to borrow depends on your own individual circumstances and the different borrowing criteria for different lenders however the main factors that lenders consider when determining your borrowing capacity are:
- The amount of income you earn from wages, investments, government benefits
- Your employment history
- Your deposit amount
- Any other ongoing credit commitments such as credit cards, personal loans
- Your credit history
- Your living costs including the costs of any dependants you are responsible for
- Term of your loan
- Your interest rate
From the 1st January 2011 the Australian Government introduced new responsible lending regulation which places a duty of care on all lenders to not only ensure you can afford any loans they provide however they also now need to understand a number of other possible scenarios when providing credit which can include seeking further information on the following;
- Any known potential changes to your job or income in the future
- Are you looking to start a family and the impact of this decision on your ability to service any loan they may provide
- Understand any costs that may arise in the future such as school fees
In summary how much you can borrow will depend on the above variables and your current and future circumstances.
If you would like more information on how much you can borrow our loan calculator can provide you with a indication on your potential borrowing capacity or just give us a call on (07) 3349 9044 or contact us now.