Before trying to maximise your borrowing capacity, you should get an estimate of how much you’re allowed to borrow. You can use our borrowing power calculator to get an estimate of the amount that you may be able to borrow to buy property.
The calculator takes into account many things that the banks and lenders consider, thus making for a fairly accurate result. The borrowing power is usually calculated by the formula: Gross income – tax – existing commitments – new commitments – living expenses – buffer = monthly surplus.
But please keep in mind that it should only be used as a guide.
Here are a few things that you guys can do to maximise your borrowing power:
- Choose the right lender for you, one that allows you guys borrow more.
- Find out which lenders can include overtime, bonus and other income in their assessment.
- Cancel your credit cards or at least decrease their limit.
- Switch any current loans that you may have to interest only. This is acceptable to some lenders.
- If you’ve got any current loans, fix their rate. However, only a few lenders may accept this.
You can enquire online or give us a call on 1300 889 743.
Cheers,