Unlock Your Potential with Our Borrowing Capacity Home Loan Calculator

Your borrowing capacity is determined by several key factors, each designed to assess your ability to repay a loan comfortably without financial strain. Here’s what lenders consider:

• Income: This includes your salary, bonuses, commissions, and any other consistent sources of income. Lenders use this to gauge your earning stability and potential to meet monthly mortgage payments.
• Expenses: Regular outgoings such as bills, loans, credit card payments, and living expenses are accounted for to ensure you have enough disposable income to cover new borrowing costs.
• Existing Debts: Any current obligations like personal loans, auto loans, and other credit lines are considered, as these affect your capacity to take on additional debt.

• Credit Score: A good credit score can enhance your borrowing capacity, as it signals to lenders that you are a low-risk borrower with a history of managing credit responsibly.
• Loan Terms: The interest rate, loan type, and repayment period can all influence the amount you can borrow. Longer terms or lower rates may increase borrowing capacity by reducing monthly payments.
• Deposit Size: The amount of money you can put down as a deposit directly impacts the loan amount, with a larger deposit potentially increasing your borrowing capacity.