Finance Tips20 July 20265 min read
Borrowing power is the amount a lender is willing to let you borrow, and it is shaped by more than just your salary.
Lenders look at your income, but also your living expenses, existing debts, credit card limits, and any dependants. They apply an assessment rate, often higher than the actual rate, to test whether you could still afford repayments if rates rose.
Reducing your credit card limits, clearing small debts, and keeping your spending steady in the months before you apply can all help your position.
Use our Borrowing Power Calculator for a quick estimate, then talk to us about how your full situation lines up with what lenders are looking for.