8 ways to increase your
home loan borrowing power
home loan borrowing power
Estimated read time: 5 Minutes
The higher your home loan borrowing power, the more options you could have. And the good news is, there are plenty of ways to help increase your borrowing capacity – here are eight of them.
Buying a home will likely be one of the biggest purchases of your life. Whether you’re looking to buy your first home, refinance or buy an investment property, it helps to know how much you can borrow. This is known as your borrowing power or borrowing capacity, and is typically the first step in the home buying process.
Your borrowing capacity will vary between lenders and even between different home loan products with the same lender. While every lender uses a slightly different method to calculate borrowing capacity, there are several things they will always look at including your credit history, income, expenses and debts as well as the size of your deposit.
If your borrowing capacity is lower than you’d like, here are eight things you can do to try and improve it.
Not everybody’s situation is the same. Luckily there’s a wide range of options for boosting your home loan borrowing power.
Thinking about applying for a home loan? See how much you could borrow with our borrowing power calculator.
Information provided is factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser.
All applications for credit are subject to credit assessment, eligibility criteria and lending limits. Terms, conditions, fees and charges apply.
The results of the borrowing power calculator are based on information you have provided and is to be used as a guide only. The output of the calculator is subject to the assumptions provided in the calculator (see 'about this calculator') and are subject to change. It does not constitute a quote, pre-qualification, approval for credit or an offer for credit and you should not enter commitments based on it. The interest rates do not reflect true interest rates and the formula used for the purpose of calculating estimated borrowing power is based on the assumption that interest rates remain constant for the chosen loan term. Your borrowing power amount will be different if a full application is submitted and we complete responsible lending assessment. The results in the calculator do not take into account loan setup or establishment fees nor government, statutory or lenders fees, which may be applicable from time to time. Calculator by Widgetworks.
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