Experienced variation in your borrowing capacity?

The first thing that most of us would like to know before applying for a home loan is how much can I borrow? What is my borrowing capacity?

We would then most likely contact our bank who will work out the borrowing capacity based on income, expenses and current ongoing liabilities.

The interesting thing however a lot of you may have noticed is that the result is different with different lenders. Ever wondered why?

The answer to that is the lenders HEM – House Expenditure Measure – the benchmark lenders use to estimate a loan applicants annual expenses.

Each lender has their own HEM benchmark. This benchmark is also related to the applicants income and number of dependents.

It is therefore important to shop around for lender not only for a better interest rate, but also to find your best borrowing capacity.

Contact us and we can do that work for you.