What is Borrowing Capacity?
Quick definition
Borrowing capacity is an estimate of how much a lender may allow you to borrow based on income, expenses, debts, and lending rules.
Borrowing capacityHome loansGeneral
Overview
Borrowing capacity calculations usually assess your income, living costs, debt commitments, and serviceability settings such as assessment-rate buffers.
The result is indicative only and can differ between lenders because policies and risk settings vary.