Ilse Evans Has Some Sound Advice on Borrowing to Buy a House

As Harcourts’ Ilse Evans says, with interest rates at historically low levels, now is a superb time to be buying. However, before going house hunting, it makes good sense to know how much you can actually borrow from your lender. Your borrowing capacity is the amount that a lender will lend you to buy a property. Sounds simple but it's not: there are all kinds of factors involved that determine the amount a lender comes up with, and your loan amount can vary from lender to lender. Read on to find out more about borrowing capacity.

Ilse goes on to ask, “How much could you borrow?” There are two parts to the overall calculation that lenders work through in determining your borrowing capacity, the amount they will lend you for a mortgage. Lenders will look at both your income and your expenses to calculate how much you have left over to make loan repayments. Even with a large deposit and several assets under your belt, it doesn't mean you have the cash flow required to repay a mortgage.

So, how to improve borrowing capacity? If you find you're not able to borrow as much as you would like, there are ways you can improve your borrowing capacity. By focusing on either increasing your income or decreasing your expenses, you may be able to borrow more.

While online mortgage calculators are useful in calculating a rough estimate of the amount you could potentially borrow, if you are shopping around for a home loan it's worthwhile getting in touch with a Mortgage Express adviser to discuss your borrowing capacity and lending options.

Ilse says, “Call me, I would be delighted to connect you with one of our many Mortgage Express advisors to assist you”, and for more information on house auctions Belmont, selling my house Takapuna and Harcourts agents Takapuna please go to http://www.ilseevans.co.nz.