Borrowing Power

Do you know what your borrowing power is? The problem with borrowing power is there's usually two aspects to borrowing power. One is your deposit. Two is your income versus your liabilities. The thing that most people forget about with all the calculators on the websites is that you need the deposit to be able to make your borrowing power work. Most borrowing power calculators only take into account your income and your expenses and your liabilities. And each bank is different when it comes to that as well. The problem when you come to deposit is you could be earning a couple of hundred thousand dollars a year and have no deposit. Now, there's questions around why you would be earning $200,000 a year and have no deposit. But that being said, if you don't have a deposit, you do not have borrowing power. So. So borrowing power consists of both the deposit to be able to buy the home, and also your income and liabilities to be able to afford the loan itself. So when you're next looking at borrowing power, check out that it's what you deposited as well. Some banks will still lend 95% on your own place. Some banks will only lend 95% inclusive of fees. And. And some will restrict you to 90%. Typically, the lower the interest rate, the harder it is to get into that bank. All right, have a great day.