Understand borrowing capacity, income factors, and lender criteria.
Borrowing capacity is the amount a lender may allow you to borrow based on your income, expenses, debts, credit profile, and overall financial stability.
It is not just based on salary. Lenders also stress test repayments to check whether you could still afford the loan if interest rates rise.
Lenders usually assess your employment type, base income, overtime or bonus income, credit card limits, personal loans, living expenses, dependants, and savings history.
If your expenses are high or you carry multiple debts, your borrowing power can fall even when your income looks strong.
Reduce unused credit card limits, pay down short-term debt, avoid late payments, and keep your spending records clean for several months before applying.
A larger deposit can also improve your position by lowering the amount you need to borrow and reducing lender risk.