If you're dreaming of buying your first home, there’s one number you need to know: your borrowing capacity. It’s the maximum amount a lender will let you borrow for your dream property—and it’s the key to setting realistic goals and avoiding financial surprises.

How is Borrowing Capacity Calculated?

Lenders consider the following factors:

• Income: The higher and more stable, the better.
• Debts & Expenses: Credit cards, personal loans, and monthly bills all reduce how much you can borrow.
• Credit Score: A solid score can boost your borrowing power.
• Loan Term & Interest Rates: Longer terms or lower rates can work in your favour.
• Savings: A healthy deposit shows you’re financially ready to buy.

What Affects Borrowing Capacity?

Your borrowing power is dynamic, not fixed. Key factors like salary increases, debt reduction, and fluctuating interest rates can all impact how much you can borrow. This is why it's crucial to monitor your borrowing capacity throughout your home-buying journey.

Why It’s Important

Knowing your borrowing capacity means:

• You can target homes within your budget.
• You avoid the stress of overcommitting financially.
• You’re ready to negotiate like a pro.

We’re Here to Help

At Organic Home Loans, we make understanding your borrowing capacity simple. Whether you’re just starting or ready to buy, we’ll guide you through the process so you can make confident decisions.

Let’s turn your dream of homeownership into reality. Contact us to find out how much you can borrow.