“How much can I borrow for a home loan?” It’s often the first question our clients ask us. And rightfully so! Understanding your borrowing capacity and how much you can borrow should be the first step in your journey towards homeownership. Without understanding your borrowing capacity, you won’t know what types of homes or areas you can afford.

No1 Property Guide takes a different approach to understand what you can borrow than other companies. Unlike traditional banks or lenders, we tailor our calculation to suit lending policies before any application process is started.

We’re able to do this thanks to the unique pre-qualification process Darren Walters created. Which ensures we get the most accurate estimate of your borrowing capacity possible. All without impacting your credit score or doing a formal application.

This ensures there are no unnecessary hits on your credit file, while also increasing your odds of being approved once you do apply. In fact, we have a 90%+ success rate for our finance application process.

In this article, we’re going to walk you through the steps we take to find out your borrowing capacity. As well as how you can improve your borrowing capacity.

What Do Lenders Check When Deciding How Much I Can Borrow?

The exact checks a lender will do will vary depending on who you talk to. But they generally all involve the same few key checks:

• Income
• Financial stability & independence
• Credit history
• Existing debts
• Deposit amount

Many banks and lenders won’t tell you how much you can borrow for a home loan until you can show them a 20% deposit. This means your deposit amount is often the difference between you getting approved for a loan versus being stuck renting.

This is where No1 Property Guide differs. After understanding your full situation, we’ll provide you with all your factual options and give you a highly accurate estimate of your borrowing capacity. Even if you have no deposit.

Darren Walters’ no or low deposit new home system helps renters from all backgrounds and circumstances. He has helped thousands of people escape the rental nightmare and get into their own homes.

And even if we can’t provide you with a solution today, we’ll work with you and create a plan to get you into the property market as soon as possible.

Can’t I Just Use A Home Loan Calculator?

Home loan calculators can give you a rough estimate of how much you can borrow for a home loan, but they’re not accurate. They aren’t able to tailor their calculations to your exact situation and or tailor you to suit the lending criteria of the banks or lenders.

A home loan calculator generally makes various assumptions. These online calculators, while helpful in getting started, don’t give you the full picture. They don’t provide you with the same individual touch that a person can. They also can’t show you the alternative options that may be available to you.

At No1 Property Guide, our mortgage managers assess your situation and calculate your borrowing capacity using the knowledge and experience that Darren Walters has built up over the past 20 years. This ensures that when you apply for your no or low deposit home loan through us, you’re almost guaranteed to be approved.

What if I Have Outstanding Personal Loans & Debts?

One of the main components, when we’re calculating your borrowing capacity, is your debts vs your income. This does mean that having outstanding debts, like personal loans and credit cards, can impact how much you can borrow.

However, there are ways No1 Property Guide can help you with your debts to increase your borrowing capacity and get you closer to your own home.

One of the best ways we can assist with your debt issues is through our sister company Loantec. By having their experienced finance team assess your situation, they can offer solutions that might be able to reduce your repayments and increase what you can afford to pay towards a house. The most common way is through debt consolidation.

Instead of multiple debts and credit card repayments, debt consolidation can possibly reduce your repayments to a single lower payment that saves you money*.

However, the only way to know if your debts will impact your borrowing capacity at all is to fill in our pre-qualification form so we can assess your entire situation and give you the factual information.

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So, it’s Possible to Buy a House with No or Low Deposit?

Absolutely! No1 Property Guide specialises in providing renters with an opportunity to enter the property market. Even with no or low deposit. All of our house and land packages are available for no or low deposit clients, the only thing that matters is your borrowing capacity, which will determine how much you can borrow for a home loan.

In fact, not only is it possible to get approval for a home loan with no or low deposit, if you have a low deposit you can work with our team to design and get custom features in your new home as well.

How Do I Find Out How Much I Can Borrow for a Home Loan?

The best way to find out how much you can borrow is to fill in our pre-qualification form. This will allow our team to calculate your borrowing capacity. From there our New Home Specialists will work with you and go over all your factual new home options.