How much can I borrow?

There are a range of factors used by banks to determine the lending policies for which you will qualify, such as your savings and employment history.

Loan calculators

Loan calculators are a handy way of establishing an indicative range, but they’re no substitute for the advice and personalised service of a Smartline Adviser, who will provide you with a far more accurate picture of your borrowing capacity – and what you can actually spend.


Under most circumstances, your Smartline Adviser can get loan pre-approval from your
lender so that you have an indication of how much you can borrow.

‘Pre-approval’, also referred to as ‘approval in principle’, means that a lender assesses your financial position and lets you know how much they would be prepared to lend you.

You don’t need to see every lender – just your Smartline Adviser, who will guide you through some questions and then research lenders on your behalf. Do be honest about your financial situation and be ready to provide proof, because lenders will conduct credit checks.

It’s important to be aware that while pre-approvals can last up to three months with some lenders, the amount you can borrow may change as a result of changes in lenders’ own policies.

Obtaining a pre-approval doesn’t necessarily mean that’s what you’ll get to borrow. While the pre-approval is valid at the time of issue, as time passes it becomes increasingly important to stay in touch with your Adviser.

Your borrowing capacity could be reassessed when you actually apply for the loan, so if
anything changes between the time you received pre-approval and the actual application – either from the bank’s or your own perspective – then your borrowing capacity may be affected,

For example, let’s say the amount the lender allocates for your living expenses changes – from, say, $1200 a month to $1400 a month. That’s $200 a month and represents quite a significant reduction in your ability to repay a loan, so it will affect your borrowing capacity.

How does a lender assess me?

Lenders vary in how much they will lend, depending on their own policies. That’s why it’s
so important to use the services of your Smartline Adviser – so you understand all your options.

Lenders take into account the estimated overall cost of the property (including stamp duty and charges) and how much deposit you have. They then calculate repayments at their assessment rate and gauge whether you can afford them based on your income, any existing financial liabilities you may have (such as credit cards and personal loans) the number of dependant children you have, as well as various other factors, using their own inbuilt estimates of household expenditure.

Smartline Advisers have access to the lending criteria and rules for all of its 25 lenders. Meaning our Advisers can provide you with the details of the option that is right for you and your unique circumstances – and you don’t waste time applying with a lender who will assess you less favourably.

Talk with your Smartline Mortgage Broker to help you accurately assess your borrowing capacity.


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