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What is borrowing power? Borrowing power is the amount you can
borrow to finance your property purchase. Your borrowing power is
determined by your income, financial commitments, current savings and
your credit history.
By looking at your income (less your financial commitments), you can
gain an idea of your repayment capability. You also need to take into
consideration your living expenses, so that you can repay your loan
and maintain the lifestyle you are used to. If you are applying with
a partner, your repayment capability will be higher and therefore you
will be able to borrow more.
Your credit history (your past record of repaying loans and credit cards)
will also be assessed when you apply for a loan. You can obtain a report
on your credit history by contacting Credit Advantage Limited:
Public Access Division
Baycorp
PO Box 964
North Sydney NSW 2059
Ph: (02) 9464 6000
ANZ can lend up to 95% of the property value, however you will need
to show that you have at least 10% of the property value in real
savings. If you have your cash tied up in other investments, an
ANZ Deposit Bond
can help you pay for the deposit until your investments are cashed in.
Before you start your search for a home, it is useful to get an
indication on how much you will be able to borrow. The
How much can I borrow? calculator
will give you an indication of the amount you can borrow. This is an
obligation–free, and totally anonymous tool that will help you
determine a price range for your new home. It will give you an
indication based on standard ratios and affordability measures.
In other words, it assesses your ability to meet repayments for your
desired loan amount.
The
ANZ Loan Repayment Calculator
can also help you calculate your loan repayments, how long it could
take you to pay off the loan, as well as estimate a loan amount based
on a repayment amount entered.
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