Understanding your borrowing capacity
Your borrowing capacity plays a key role in securing a home loan, as it determines how much a lender may offer you and helps you set a realistic property budget. Knowing your borrowing power upfront allows you to focus your search on homes within your financial reach and gives you confidence during negotiations. At GC Wealth, we simplify this process by guiding you through each step, ensuring you have the clarity and knowledge to make informed decisions.
What affects your borrowing power?
Lenders assess multiple factors to determine how much you can borrow, including:
- Income & Employment: Lenders assess your salary, additional income, job stability, and history to gauge borrowing power. Steady income boosts capacity, while variable income may lower it.
- Expenses & Liabilities: Existing loans, credit cards, rent, and living costs are reviewed to ensure you can afford repayments.
- Loan Structure & Interest Rates: Loan type, terms, and rates impact affordability. Features like interest-only or fixed vs. variable rates influence options.
- Lender Policies & Government Regulations: Lender policies and regulations affect borrowing limits, with stricter criteria from some and flexibility from others based on your financial profile.
How we help you maximise your borrowing potential
At GC Wealth, we take the time to understand your financial situation and tailor solutions that align with your goals. Whether you’re a first-time buyer, investor, or upgrading your home, we’ll help you:
✔ Assess your financial position and estimate your borrowing capacity.
✔ Explore lender options, loan structures, and repayment strategies.
✔ Implement strategies to improve borrowing power, such as managing debt or adjusting expenses.
✔ Identify government grants, stamp duty concessions, and cost-saving incentives.
✔ Simplify loan features like offset accounts, fixed vs. variable rates, and redraw facilities.
✔ Secure pre-approval so you can confidently search for a property within your budget.
At GC Wealth, we understand that knowing your borrowing capacity is key to achieving your property goals. It’s about setting realistic expectations, confidently finding the right home, and understanding where you stand before speaking with lenders. Securing the right loan is not just about financing; it’s about building a strong foundation for your financial future, with a structure that helps you manage repayments, leverage useful features, and stay on track with your long-term goals.
Gold Coast Wealth Pty Ltd ABN 55 677 524 551 Credit Representative 559826 is authorised under Australian Credit Licence 389328 Disclaimer: Document provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal; tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders credit assessment with terms and conditions, fees and charges and eligibility criteria apply.