With fluctuating interest rates and a competitive housing market, understanding your borrowing power has never been more crucial. Buying property, whether your first home, an investment or upgrading, is exciting, but figuring out how much you can borrow can feel overwhelming.
At Carbon Finance & Lending, we simplify this process, making it transparent and personalised for your unique situation. Here’s what you need to know about how much you might borrow and how we approach it at Carbon.
Table of Contents
What Influences Your Borrowing Power?
Your borrowing capacity isn’t just about your salary. Here’s what lenders typically assess:
- Income and Stability: Regular salary, rental income, dividends or government benefits.
- Expenses: Essential living costs, debts such as car loans, credit cards, personal loans and monthly commitments like subscriptions.
- Financial History: Your credit history and past repayment behaviour can significantly impact your borrowing potential.
- Purpose of Loan: Whether you’re borrowing for a home to live in or an investment property, as lenders view these differently.
How Lenders Assess Your Mortgage Capacity
At Carbon Finance & Lending, we connect directly with over 50 lenders, using our market expertise and strong relationships to secure the ideal loan for you. Our approach involves:
- Evaluating your full financial picture, not just income, but your lifestyle and spending habits.
- Considering your future plans. Whether you’re buying a home now as a stepping stone to rent out later or investing in a long-term property, we ensure your borrowing strategy aligns with your goals.
- Identifying lenders whose criteria align with your specific circumstances.
- Clearly highlighting your financial strengths to lenders, maximising your opportunity for securing the right loan.
When Should You Consider Your Borrowing Power?
Getting a clear picture of your borrowing capacity early gives you a confident start on your property journey. Here are signs you’re ready:
Buying your first home:
- Stable and predictable income.
- Strong savings history, ideally with at least a 20% deposit or access to a guarantor from parents or close relatives.
Buying an investment property:
- Strong financial foundation and equity in your current property.
- Good understanding of market conditions.
- Confidence in managing additional financial commitments.
- Clear strategy with property.
Borrowing Estimates by Salary Across Major Banks
Here’s how borrowing capacities can differ by salary across five major Australian banks:
| Salary | CommBank | ANZ | NAB | Westpac | ING |
|---|---|---|---|---|---|
| $70,000 | $355,500 | $360,000 | $354,635 | $365,496 | $362,700 |
| $80,000 | $390,400 | $390,000 | $390,634 | $400,677 | $409,600 |
| $120,000 | $617,700 | $611,000 | $612,479 | $630,132 | $644,100 |
These figures are estimates only, your actual borrowing power may vary.
Already Have a Mortgage? Here’s What to Expect
Your existing mortgage impacts your future borrowing ability. Key considerations include:
- Repayment history and remaining equity in your current property.
- Current loan terms and repayments.
- Your ability to manage additional debt comfortably.
Ready to Find Out Exactly What You Can Borrow?
Calculators offer general insights but nothing beats personalised advice from our specialists at Carbon Finance & Lending. Get in touch with us directly for a clear, tailored assessment of your borrowing power and professional guidance every step of the way.
Take control of your financial future. Book a free borrowing capacity assessment with Carbon today!
