Factors That Impact Your Borrowing Capacity

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Factors that impact your borrowing capacity.

Borrowing capacity is the amount of money a lender or mortgage broker is willing to extend to you to purchase a property. It is also a measure of your ability to make ongoing loan repayments. In bank language we're talking 'serviceability.'

To establish how much they’re willing to loan you, a lender first needs to assess the amount you can afford to put down as a deposit as well as the likelihood of your meeting your loan obligations.

Even if you can make a substantial deposit and have plenty of assets to your name, it doesn’t automatically mean you have the cash flow to honour your repayment schedule.

Lenders consider the following critical factors when calculating the loan value for which you qualify.

Did you know?

With our in-house mortgage broking division we bridge the gap between the countless phone calls and emails between lender and accountant making your refinancing and borrowing much less stressful.

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How we can help.

SMART Business Solutions is a registered financial services provider and perfectly positioned to help you calculate the level of home loan you qualify to borrow and how to boost your borrowing power.

If you’re in the market for a financial advisor with knowledge of the property market and mortgages, SMART Business Solutions can team up with you to help you purchase a property at the best interest rates and on the most reasonable terms possible. We are here for you every step of the way, providing regular check-ins to ensure you stay on track to property ownership success!

Get in touch

Our in-house mortgage broking service makes your mortgage and lending needs so much easier, minimising the discord between accountant, lender and product advice.

We'd love to help you find the best loan for your needs.

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