Borrowing money in the form of loans for buying a house is age old method to buy a new house or invest in one. Rarely, it might happen that you have surplus money sufficient to buy a house and pay the entire cost as down payment. There will always be a need of availing a home loan and pay some amount of money as down payment. Now how much loan you can take depends upon a lot of factors that is important for you to understand thoroughly before you apply for a loan.
Factors that determine the amount of loan that can be granted
The various factors that determine the amount of home loan that can be sanctioned are discussed as follows.
- Interest Rate and Loan Period
- Your income and your partner’s income
- Loan repayment method
- Credit score
- Spending and consumption pattern
- Existing loans
- Financial liabilities
- Other Assets
- Profession and source of income
- Bank Account Statement and Income Tax file returns
Is it possible to calculate the amount of loan that can be sanctioned on your own?
A usual question that intrigues everyone is that is it possible to know how much loan can be availed before approaching a bank or a lending house. Well you need not worry at all. Sites like iSelect.com offer free loan borrowing power calculator that enables you to get a fair estimate of how much loan you can avail. You just need to be prepared with the information and data presented above and find the maximum limits for your loan.
Can I borrow loan up to any limit?
Borrowers always wish that they can avail 100% loan against the property they intend to buy. But that is not possible. You cannot avail loan up to any amount. There are limits to your borrowing, and thus it gets very important for you to calculate the amount that can be sanctioned for your home loan.
What is the significance of Credit Score in determining the amount of Housing loan?
It is very easy for you to use credit card and buy a host of things on credit. But you usually do not realize the importance of paying your credit card outstanding on time and ensure that your credit score is always rated high. If you ever buy a refrigerator, television or even a mobile on installments, do ensure that all the installments are paid on time and there is no gap in the payment during the entire loan. These small credit purchases help you to build a good credit score that enables you to draw an impressive and huge loan amount for your home.
Borrowing power calculator
If you want to find out how much loan you can avail you can simply log on to https://www.iselect.com.au/home-loans/how-much-can-i- borrow/
iSelect.com is one such site where you can easily find out the amount of loan you can borrow. It is an excellent site, where your information remains confidential and you get a fair idea of the amount of loan you can borrow.