FAQs / Saving for a home loan

How much can I borrow against my salary?

All FAQs

Every lender has their own formula for calculating your borrowing power, and they generally look at six main factors.

  • Deposit - the larger your deposit, the more you can borrow and the less interest you’ll have to pay on your loan.

  • Income – this is not just how much your household brings in, but how much is left for home loan repayments after the bills and day-to-day expenses are paid.

  • Level of debt – how much you owe on other loans and credit cards will also influence your available income.

  • Savings history – having a savings history of at least 3 months demonstrates to a lender that you’ll be able to manage your home loan repayments.

  • Credit rating – a sound credit rating is one of the first things lenders look at, as it is based on your borrowing and repayment history.

  • Home loan term – a lender will look more favourably at a longer loan term, but remember it will mean you pay more interest over the life of the loan.

  • Property value - a lender may conduct a valuation of your chosen property to determine the amount they are willing to lend you.

​​You can get an upfront estimate of your borrowing power with Tic:Toc by using our borrowing calculator.