Buying guide
How much can I borrow for a mortgage?
Before looking for a home, you should calculate how much you can borrow and afford for a mortgage.
AI summary
Determining your mortgage borrowing power is a crucial first step before house hunting. A rough guide is to multiply your gross annual income by five.
Lenders typically require a 20% deposit, which helps you secure better rates and avoid low-equity fees. They assess your affordability based on income, expenses, dependents, and your credit score. A score over 700 is viewed favourably.
While pre-approval provides a strong framework, the final loan amount depends on the specific property. Using a mortgage broker can help you navigate different lender policies.
What you’ll learn:
How much can I borrow for a mortgage?
How much of a mortgage can I afford?
How can I borrow as much as possible?
Regular income earners are treated differently to those that are self employed
Will pre-approval on a home loan tell me exactly what I can borrow?
How can my credit rating affect my ability to borrow for a mortgage?
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