Borrowing capacity is the maximum amount a lender is willing to lend you based on your financial situation.
It is not based on property price — it is based on you.
Your repayment history plays a major role in approval.
Lenders don’t use current rates alone. They test your ability to repay at higher rates (buffer rates), ensuring you can handle future increases.
This is why one bank may offer $600K while another offers $720K.
Even unused credit limits affect borrowing power.
Bonuses and secondary income help.
Lenders assess lifestyle spending.
A broker like Believe Finance compares multiple lenders to maximise borrowing capacity and approval chances.
Your borrowing capacity is one of the most important factors in buying property. Understanding it early gives you clarity, confidence, and control.