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How Much Mortgage Can I Borrow?

Buying your dream home starts with knowing your budget. But figuring out how much you can actually borrow for a mortgage can feel confusing. Don’t worry, we’re here to help!

Lenders look at a few key things to decide how much they’re willing to lend you:

  • Your income: This is the foundation of your borrowing power. The more you earn, the more you can potentially borrow.
  • Your deposit: A larger deposit usually means you can borrow more and access better interest rates.
  • Your credit history: A good credit score shows lenders you’re reliable with repayments.
  • Your existing debts: Any outstanding loans or credit card balances will affect how much you can borrow.
  • The property value: Lenders will only lend a certain percentage of the property’s value.

How is affordability calculated?

Lenders often use “income multiples” to get an initial idea of how much you can borrow. This usually means they’ll lend you a certain multiple of your annual income (e.g., 4 or 5 times your salary). They also consider your “debt-to-income ratio” to make sure your total debt isn’t too high compared to your income.

Want a personalized estimate?

Our easy-to-use mortgage calculator takes the guesswork out of affordability. Just plug in some basic information and get an instant estimate of how much you could borrow.

Click here to use our mortgage calculator!

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