Did you know that each bank has it’s own individual method of calculating how much you can borrow ???
Did you also know that there can be a significant difference in the maximum loan amount one bank will lend to you compared to the other banks.
The reasons behind these differences are many & varied with several example noted below.
- How the bank calculates your “Assessed Income” which can differ greatly from your “Actual Income” if you are employed on a Part-Time or Casual basis or your income includes overtime, allowances or salary sacrificed deductions.
- The banks may elect to use only a percentage of the Family Tax Benefits you receive from Centrelink based on the age of your children.
- The manner in which the banks calculate your minimum monthly “Living Expenses” can vary greatly based on the suburb in which you reside, the amount of income you earn & the number of people living with you
- The “Buffer” is an additional amount the bank will add on top of your actual interest rate to ensure you will continue to be able to afford your new loan repayments if interest rates were to rise in the future
Unfortunately many potential borrowers are not aware that ALL BANKS ARE NOT THE SAME. The reality for many hopeful borrowers is that if one bank is unable to assist, you may actually have other banks who are more than happy to say “YES” and may even be prepared to offer lower interest rates to win your business.
Q: How can I calculate my actual maximum borrowing capacity and home loan options ???
A: Click on “CONTACT US” or speak to our friendly Mortgage Specialists
