Nearly every web site I look at has an FAQ or Frequently Asked Questions page.
But when I sat down to write my questions page I realised that 99.9% of everyone who comes to see me has exactly the same question: How much can I borrow?
That's really all anyone wants to know in the beginning.
I'm sorry but I can't answer this question on this page. The answer depends on so many things. There isn't a 'set-in-concrete' rule.
However, once I've talked to you and found out what I need to know, then I can give you a pretty good idea in a very short time.
Most mortgage brokers have some very clever tools at their fingertips. We can type in a few vital facts and figures into our computers and calculate just how much the various banks (and other lenders) might be willing to loan you today (or tomorrow).
In the same way, your local travel agent can find the best (or cheapest) airfares then I can find out which lenders can offer you the right home loan for your particular situation or requirements. It's very simple software that's constantly updated over the internet.
So talk to me and I will answer that all-important question: How much can I borrow?
Working out how much you can borrow:
Lenders call this your "borrowing capacity" It is one of the very important factors that will be looked at in assessing whether or not you can afford a loan, and how much you can afford to repay.
When you visit your Mrs. Mortgage broker, take along the following information, and we will be able to calculate roughly how much you can afford to borrow, and what you can afford to repay each month.
- Your yearly income before and after tax (if you have group certificates, bring those along).
- If you are self-employed it is best to have two years of tax returns from your accountant.
- A list of all your outstanding loans, including credit cards, personal loans, car loans, and store finance (even interest-free loans).
- A complete list of assets
- Any other forms of income, such as rental income, share dividends, etc
- If the loan will be in a joint name (such as for a married couple) then this information should be provided for both individuals, as well as anything in joint names.
Your broker may ask for additional information to better assess your situation. Remember, the broker's job is to get you the best possible loan for your situation, so be as open and honest as possible.