How much you can borrow is not the question, how much can you afford to pay is the key. The internet is littered with calculators that give you some ridiculous amount that you can borrow. Most calculators take into account a few basic numbers and spit out a result that makes the eyes water. They […]
Borrowing capacity challenges
Borrowing capacities have decreased Do you have an existing home and/or investment loan and are considering buying further property? You will find your borrowing capacity has decreased. The effect is amplified the greater your existing lending and if you have a high proportion of interest only loans. Why is this happening? Banks and lenders have been […]
Two important numbers
Two important numbers that limit your property purchase price. When you decide to purchase another home there are two important numbers that will limit the amount you can spend. They are; The size of your savings, and The amount you can afford to spend on your loan repayments each month. When I say the amount you […]
Borrowing Capacity
Borrowing Capacity vs Budget Capacity A phrase I heard many years ago has stuck in my mind and encapsulates the title of this article. “Just because the bank says you can borrow a certain amount of money doesn’t mean you can afford to.” It neatly sums up the difference between your theoretical borrowing capacity i.e. […]