What is my maximum borrowing capacity?
Your maximum borrowing capacity is based on your income and the deposit you have available. When calculating your income, lenders will consider your salary and any other income you receive as long as it can be verified. For investment properties between 60-100% of the rental amount can be used depending on the lender chosen. Some lenders will even take into account the tax deductibility of investment loans when working out your borrowing capacity. Your borrowing capacity based on your income may be $800,000 but if you don’t have a deposit then in reality you might only be able to purchase a property for $450,000 (based on the deposit you have).
