What is Borrowing Capacity and How is it Calculated?
GENERAL FINANCE EDUCATION

What is Borrowing Capacity and How is it Calculated?

Key factors that affect your loan eligibility.

What affects it

Borrowing capacity is influenced by your income, current debts, living expenses, number of dependants, credit limits, savings, and the lender stress test.

Why calculators vary

Online calculators are only estimates. Different lenders shade income differently and use their own expense and risk models.

How to improve it

Reducing debt, lowering credit limits, increasing your deposit, and keeping your income documents clean can all help improve your result.