If you're thinking about buying real estate in Australia, one of the first things you should ask yourself is how much can I borrow?

After all, understanding how much your potential home loan could be can play a big role in the types of property you decide to seriously consider during your search.

These days, chances are you'll be bidding for your property in an auction, so having your finances sorted out before approaching the market is a good way to ensure a more prepared buyer doesn’t swoop in and steal your dream home from right out under you.

One of the first things to consider is your borrowing capacity. Simply put, this figure is how much a potential lender will be willing to put toward your home loan and is available for bidding purposes.

By taking your income, expenses and the value of the property into account, you can calculate your potential borrowing capacity using any number of online home loan calculators.

However, it is important to remember that these amounts are only estimates. It is recommended you get in contact with one of Smartline's mortgage brokers in order to sit down, have a consultation, and accurately calculate how much is available for you to bid with.

Another aspect that is crucial to remember during the heat of a bidding battle is to not exceed your financial limit. It's better to lose your dream home than to take on a home loan you're unable to pay, and get entangled in a crippling debt.

Furthermore, having your home loan pre approved could go a long way to ensuring you obtain your dream property. By ensuring you're ready to sign the papers as soon as the auction finishes, you're that much more likely to succeed in your real estate endeavours.

If you're looking for an expert financier to chat with, you can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!

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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.