Borrowing Power

Enter your estimated living expenses.  If you are unsure of your living expenses use our Budget Planner to work out an estimate of your living expenses.

Enter your regular repayments that you make for any car loans, personal loans, investment loans etc.  If you have no other loans just put a 0.

Enter the combined limit of all your credit cards and store cards (not the balance owing).

 TIP: Again you can choose the payment period – weekly, fortnightly, monthly or annually.

What Interest rate to use? A good starting point is to use the Standard Variable Rate (SVR) from one of the major banks, less a 0.7% discount. This is a good rough guide, although it is highly likely that I may be able to get your a better interest rate.

Loan Term – Most home loans are for a 25 or 30 year loan term, but can go up to 40 years. Please keep in mind the shorter your term, the higher your repayments. However, the faster you pay off the loan, the less interest you will ultimately pay.

The easiest way to improve your borrowing power is to decrease your expenses.  Have a look at living expenses and are there areas where you can cut back? For example are you paying for a Foxtel subscription or Gym membership but never use them.

Then have a look at paying off your loans and credit cards.  Remember just paying off the balance of a credit card is only the first step, you need to reduce the credit limit or cancel the card.

If you are uncertain what to do, contact me for a chat and we can go through the options in detail to improve your borrowing capacity.