Aspect Learning Guide
Borrowing capacity
Borrowing capacity is the amount a lender may be comfortable lending after reviewing your income, expenses, debts, dependants and loan term.
Borrowing capacity explained in plain English
Borrowing capacity is the amount a lender may be comfortable lending after reviewing your income, expenses, debts, dependants and loan term.
Why it matters
Two lenders can assess the same borrower differently. Income type, credit card limits, debts, dependants and expenses can all change the result.
What can improve it
Reducing unused credit limits, paying down short-term debts, choosing the right lender and adjusting the loan term may improve servicing.
Broker tip
Borrowing capacity is not the same as comfortable borrowing. The right number should also fit your real budget.
General information only: This guide does not take into account your personal objectives, financial situation or needs. Lending policy varies between lenders.