How much can I borrow – our most asked question

Whether you are a first home buyer, downsizing or looking to purchase your “forever” home, knowing how much you can borrow is an important part of the planning process. After you have saved for the deposit and other expenses related to purchasing a home, it is important to know that you can afford to maintain your mortgage for years to come and in changing circumstances.

Here are our tips to help you borrow within your budget:

Lending Criteria – what you need to provide

While each lender has their own method of assessing your borrowing capacity, they are subject to regulatory restrictions on making loans. When making a loan application, you will be required to provide comprehensive information about your income, any assets and liabilities (loans such as cars or credit cards), dependants and credit rating. It is important to be completely honest when supplying this information. Compiling this information also gives you a clear picture of your financial situation.

Your budget

While the temptation may be to borrow as much as the lending institution will allow, this may not always be the best option and could impact on your financial future and lifestyle. Setting up a budget which comprehensively tracks your income and expenses on a monthly basis will give you a clear picture of what you can afford to make in mortgage repayments and help you borrow within your budget.

A mortgage calculator ( is a great tool to help you determine a comfortable borrowing amount.

Don’t forget the extras

When planning your budget, don’t forget to consider changing circumstances such as interest rate rises, loss of income due to illness or maternity leave etc. You will also need to take into account costs associated with owning a house such as insurance, rates, maintenance and renovations.

For more information on how much you can borrow, visit:

Contact us at Hunter Lending Solutions to arrange a confidential chat.