This is a very common question, how much can you afford to borrow?
Well, your borrowing capacity is based purely on you income and expenditure, which is different for everyone. You have to take into consideration your living expenses, other debts i.e. personal loans, credit cards , car leases, Afterpay etc VS. how much money you have coming in, which can be your salary, rental income, dividends and much more.
For example, a couple with no dependents, both on $70,000 pa each, one car loan of $380 pm with a total living expense of $4000 pm could borrow (subject to many other factors) up to $680,000.
However, a family of four (2 dependents) with a household income of $100k pa, total living expenses being $4k per month, and only one credit card with a $5k limit with no other debts might be only able to borrow up to $400,000.
Each individual, couple or families borrowing capacity may be different and each calculation takes into account different things.
Please feel free to give us a call if you’d like to find out your borrowing power, or even if you’d just like to sit down with someone to write up a living expenses budget.
Disclaimer: Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product.