The amount a bank or non-bank lender is willing to lend you depends on a number of factors, including:
- Annual income i.e. wages or salary
- Weekly or monthly expenses i.e. utilities, insurance, school fees, groceries etc.
- Deposit amount i.e. the amount of money you have saved for a deposit
- Existing debts i.e. credit cards, loans, overdrafts etc.
- Your credit score
When you submit a home loan application, the lender will assess your ability to repay the loan by reviewing the factors listed above. The outcome, if your application is approved, will determine the amount you can borrow and the interest rate you will need to pay.
More frequently asked questions about home loans
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