What question do I get asked the most?

As a mortgage broker, I meet many people when they are buying a house. Lately, one common question keeps coming up.

“What is the most I can borrow?”

There’s a simple reason for this.

Homes are more expensive now than ever before.

In 1981, the ratio of typical household income to house prices was about 3.3. By March 2023, it rose to 7.8, showing a huge 236% increase, as per the ANZ housing affordability report.

And it is only getting bigger. We all hear the reports on how much the prices of houses are going up. According to propTrack, prices in Melbourne grew 1.71% in March YTD and now the average price is $802,000. 

Many buyers also prefer to keep their savings intact instead of spending it all on buying a house to have a financial cushion for anything unexpected.

Buyers want to borrow more due to high property prices and economic uncertainty, preferring loans over own funds.

Buyers are ready to give up getting the lowest rates and other perks to borrow more money.

How can you find out which lender will approve your maximum loan? How many lenders are you willing to contact or websites to visit to find out?

Lenders have different rules for deciding how much they can lend you. They may calculate overtime differently, apply shading to different income sources, or use varying assessment rates. It's hard to keep track of all these variations.

But I can.

One thing I'm sure about is that the big 4 banks are not likely to offer you the most money. They are risk-averse lenders who charge higher interest rates.

The real secret sauce for a great home loan in today’s climate the following equation:

Maximum borrowing capacity x the lowest possible interest rate x low fees. It takes a bit of time and effort to get all 3, more than you’re likely to have.

I work with 35+ lenders and can quickly find you the best loan options with low rates and fees.

If you want to know how much you can borrow, contact me now.