Ever wondered what factors may affect your borrowing capacity?
When we assess borrowing capacity, we are really looking at many factors with the purpose of finding the maximum amount you can borrow without putting you into financial jeopardy.
Meaning – as interest rates and cost of living fluctuate, can you still comfortably live without getting into trouble.
Some of the factors we look at are –
~ your existing living expenses e.g. food, utilities, education, costs associated to your dependents.
~ any existing debts you may have e.g. loans, credit cards, store cards or zip/Afterpay type accounts.
~ your current income and any pre or post deductions you may have.
~ the product type, purpose and interest rate of the new loan you are looking for. We also have to use an assessment rate on top of the rate that is being offered (usually around 3%). Factoring this in allows us to create a financial buffer for the amount being borrowed, to protect you and the lender, through the ebb’s and flows of the economy.
As much as it seems like a lot, this process allows us to keep our clients best interest mind but looking at each scenario based on your individual position and needs.
Which means we are looking out for you, first and foremost.
P.s As much as there sees like a lot involved when we review your borrowing capacity, this is the work we are passionate about doing….. so you just provide the information and we will do the leg work and number crunching for you