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What is Borrowing Power
How our "How MUCH CAN I BORROW" Calculator Works
Factors that Affect Borrowing Power
Borrowing Power FAQs
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‘How Much Can I Borrow’ Calculator

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If you’d like to get the fixed borrow amount then please call us on 0862430351 and one of our mortgage brokers will provide you with an obligation-free quote.

Disclaimer: The ‘How much can I borrow?’ calculator evaluates your income and spending to give you an accurate estimate of what you can afford to borrow. It uses the same criteria as the serviceability calculators of three leading banks to determine your home loan eligibility.

What Is Borrowing Power?

Borrowing power refers to your ability to qualify for a home loan, indicating the maximum amount a lender is willing to lend you based on your financial situation.

Before approving a home loan, lenders will carefully evaluate your financial situation to ensure you can manage repayments. This assessment takes into account factors like your income, expenses, existing debts, credit history, and assets.

The lender's assessment will determine your borrowing power, providing you with a clear price range for searching properties within your budget.

Find the Perfect Home Loan to Match Your Needs and Budget

With your borrowing power in mind, connect with the experts to discover the home loan that best suits your needs.

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How Our ‘How Much Can I Borrow’ Calculator Works

Our borrowing power calculator takes a very different approach to helping you find the most suitable loan:

It compares three banks in one go.
It uses the actual calculation methods the lenders’ credit departments use.
It can change the loan structure to work out your maximum borrowing power.
It takes into account advanced features such as fixed rates, negative gearing, interest-only periods and your family size.
In fact, the borrowing power calculator is so accurate that it even copies small errors in the tax rates used by some of the banks. If you’d like to get the best mortgage deal then please fill in our free online assessment form or call us on 0862430351 and one of our mortgage brokers will provide you with an obligation-free quote.
We have extensive knowledge of lender serviceability criteria, so we can provide you with an accurate assessment of how much you can afford to borrow.

Factors That Affect Borrowing Power

Understanding the factors that shape your ability to get approved for a home loan is key. Various factors come into play, from your income to existing debts to your credit history and assets.

Income: A higher and more consistent income could enable you to borrow more.
Debts and financial commitments: Large existing debts can decrease borrowing power.
Living expenses: High expenses may signal instability to lenders, lowering your borrowing power.
Credit history: A good credit history indicates reliability and may increase borrowing power.
Assets: Tangible and intangible assets add to credibility and borrowing capacity.
Deposit size: Larger deposits reduce lender risk, meaning you may be able to borrow more.
Home loan type, term and interest rate: Lower fees and interest rates increase borrowing power.
Value of the property: Property valuation influences the maximum loan amount.

Disclaimer: Over the next few days, you’ll receive additional guides to help you on your homebuying journey. Occasionally, you’ll receive carefully curated home-buying tips, offers & schemes, and news articles. You can unsubscribe any time you want.

Borrowing Power FAQs

Yes, improving your credit score could increase your borrowing power. A good credit score indicates to the lender that you’ve taken steps to improve your credit standing, and you might get approved for a larger loan, as you have shown you can make repayments on time.

If your borrowing power is lower than expected, you can take steps to improve your financial health and even explore alternative lending options.

This is where the expertise of a mortgage broker can help.

At Sunrise Finance WA, we can negotiate with lenders to secure competitive rates and terms, maximising your borrowing power and saving you money over the life of the loan. Call us on 0862430351 or complete our free online assessment form today.
Your borrowing power will depend on your income, family size, location, current debts, type of loan and the lender that you choose. The easiest way to increase your borrowing power is to choose a lender that can lend more to someone in your situation. Some banks are conservative when lending to investors, some use higher estimates for living expenses in their assessments, and others will lend you less if you have an interest-only loan. However, you can also change your situation to improve your borrowing capacity.

Changes in interest rates have a notable impact on borrowing power, extending beyond mere fluctuations in monthly payments and overall loan expenses.

If there is an interest rate increase, it could reduce your borrowing power. This effect is amplified by serviceability buffers, which are additional percentage points lenders add to the interest rate during loan assessment.

For instance, in October 2021, the Australian Prudential Regulation Authority increased the minimum serviceability buffer from 2.5 points to 3. This means that if you apply for a loan with a 4.5% interest rate, the lender assesses your repayment capacity as if the rate were 7.5%.

Yes, applying for a mortgage affects your borrowing power:

When you apply for a home loan, a hard enquiry goes onto your credit file.
Adding a mortgage application increases your potential debt obligation, raising your debt-to-income (DTI) ratio.
Applying for multiple pre-approvals within a short period can lower your credit score and make lenders cautious about lending to you.

Yes, you can use equity to increase your borrowing power: Equity is the difference between the market value of your property and the amount you owe on it. Here’s how using equity could increase your borrowing power:

You can take out a home equity loan or a home equity line of credit to use for home improvements, debt consolidation, or other financial needs.
You can use the equity as a deposit to purchase another property, as it can lower the amount you borrow from the lender.

We Have More Calculators To Help You With Your Situation.

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Disclaimer

While we strive for accuracy, the results from the ‘How much can I borrow?’ calculator are estimates only. These figures are for illustrative purposes based on the information provided and do not represent a loan approval, quote, or offer to lend. The calculator is not intended to guide your financial decisions and may not account for changes in living costs or actual expenses, which could differ from the lender’s calculations. Technical issues or delays in updates may lead to inaccurate results. Always seek formal approval from a lender before making an offer on a property or making financial decisions based on a new home loan.

Why use us?

We aim to set an example by delivering what we promise: a higher level of service, better advice and better home loans.

Australia-wide services

We finance properties anywhere in Australia for people anywhere in the world.

Get incredible interest rates

Our relationships with our panel of lenders allow us to negotiate your interest rate.

We get tough loans approved

We can help you navigate the often complex pre-approval and application process.

Our customers love us

We receive hundreds of love letters from our customers.

How we find you the right solution

We get a complete understanding of where you’re at and what your ultimate goals are. You’ll get a recommendation in just a few simple steps.
1

Complete our free assessment form or call us.

2

We assess your situation.

3

We look at all the options from our panel of lenders.

4

We will find you the most suitable home loan deals.

Testimonial

4.7 from 720+ reviews

4.6 from 420+ reviews

4.8 from 1600+ reviews

Facts
about us

50+

Lenders on
our panel

$4B+

lent Australia-wide
and counting

75%

of our borrowers get
approved with a major bank

95%

of our borrowers get a discount
below the bank standard variable rate

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