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Finance Basics5 min read
Understanding Borrowing Power: What Lenders Usually Consider
Borrowing power is not a fixed number across every lender. It is an estimate based on your financial position and how a lender assesses risk and serviceability.
Income type and consistency
Lenders usually assess the amount, source and consistency of income. Employment income, self-employed income and variable income may be treated differently.
Living expenses and commitments
Existing repayments, credit limits and household expenses can reduce the amount a lender may be comfortable assessing.
Loan purpose and property type
Owner-occupier, investment, commercial and asset finance applications may be assessed differently depending on purpose and security.
Why lender fit matters
Different lenders may apply different policies. A broker can help identify pathways that may be suitable after reviewing your circumstances.
General information only. This guide is provided for general information and does not take into account your objectives, financial situation or needs. Lending is subject to eligibility, lender criteria and approval. Speak with a broker for guidance based on your circumstances.