Use this simple calculator to find out your borrowing power and let us help you find your best deal.
What is my borrowing power? How a home loan borrowing calculator can help you.
Your borrowing power (the amount you can borrow) is determined by a number of factors. Lenders will look at your income (and whether you work full time, part time or casually), marital status, the number of dependents you may have, your credit score and expenses. You’re no doubt wondering about how much you can borrow on your current salary – and whether being self-employed will impact your borrowing power.
Let’s say you’re a single person earning $100,000 a year. You hold a credit card with a $10,000 limit, and your living expenses amount to around $2000 a month. uno’s home loan borrowing calculator will estimate your borrowing capacity somewhere between $470,000 and $580,000.
Now let’s say you’re a couple with one child, with a combined salary of $175,000 and living expenses of $2500 a month. You also have a credit card with a limit of $20,000. Your borrowing capacity now is somewhere between $880,000 and $1.1 million. Try the uno calculator or speak to one of our qualified brokers to find out more about your borrowing capacity.
How can I increase my borrowing power? Here’s what a borrowing power calculator won’t tell you.
A good credit rating
Those seeking a home loan can push hard for a bargain by ensuring they have a good credit rating. The key is to pay off credit cards on time and have no other outstanding financial obligations that may raise a flag with a lender. You can be sure prospective lenders will be checking your credit rating, so make sure you are too. If you’re in good financial health, and you can prove it, you’ll be in a much stronger negotiating position.
Get a pay rise
Even the slightest rise in income can yield a tremendous increase in borrowing power. In fact, as little as $10,000 delivers up to $50,000 in newfound borrowing power. Getting a pay rise is one way to boost your borrowing capability.
Ditch the credit cards
Slicing up your credit cards is a great way to eliminate debt and maximise your borrowing power. With credit cards, lenders don’t just look at your spending patterns – they assess you based on your credit limit. So if you only spend $1,000 per month on your card, but have a limit of $10,000, lenders assess you on the full $10,000.
Plug your numbers into a borrowing power calculator (at the top of this page) to get an estimate of your loan size range. Once you have that home loan, uno can offer advice on how to maximise your repayments. Our qualified staff can also offer advice on knowing when to refinance and how to set up an offset account.