Lenders differ on “How much can I borrow”
The chief executive of Resi Mortgage Corporation, Lisa Montgomery, says every financial institution assesses people's serviceability differently, so how much you can borrow may change from lender to lender.
While calculators will go some way to determining what someone can borrow, only you know what is a safe amount. “Even though you may be able to borrow a certain amount, only you will understand what really goes on with your spending.”
The chief executive of Teachers Credit Union, Steve James, says there are four main criteria a potential borrower will be assessed on: the amount and stability of income; the capacity to repay the loan (income versus expenses); future plans, such as starting a family; and credit history.
Source: The Age