Obtaining a home loan is a natural and unavoidable part of purchasing property for most Australians. Therefore, the amount you’re able to borrow from a lender usually determines the types of properties your scope will be limited to.
Before taking that first step towards trying to find real estate in Carnegie or any of the surrounding suburbs, you should calculate just how much money is available to you.
How much you can borrow depends on your borrowing capacity. It’s possible to estimate your capacity by jumping onto an online mortgage calculator and entering in both your income and expenses.
Once you have these figures, you should have a general idea about the property locations and types you can afford. However, you may wonder how to increase your borrowing capacity at this point.
And while there are no guaranteed ways to sway a lender towards a higher amount, there are a few ways you can attempt to increase your capacity overall.
For example, your credit cards and personal debts are taken into account during this assessment. Cancelling any cards you no longer use will go towards increasing your overall capacity to borrow.
As for personal debts, high interest rates can affect your borrowing capacity. Consolidating these with other debts can help reduce the overall impact these have on your assessment.
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