How much can you borrow? The four things a lender actually weighs

A common assumption is that a bank lends you a multiple of your salary and that is the end of the story. In practice a credit team works through a much longer list, and understanding it explains most of the surprises people get at pre-approval. 1. Verified income, not stated income. Lenders need income they can substantiate. PAYE applicants usually provide recent payslips, an employment agreement and sometimes a letter confirming role and pay. Bonuses, overtime and commission are treated differently from base salary, and a lender often wants around twelve months of history before counting them in full. Rental income is usually shaded down, because lenders allow for vacancy and costs. 2. Existing commitments, assessed at the limit. A credit card is measured on its limit, not its balance. A $15,000 card you never use still reduces your capacity, which is why reducing or closing unused limits is often the quickest improvement available before an application. Personal loans, car finance, student loans and buy-now-pay-later accounts all count. 3. Living expenses. Banks no longer simply accept a declared figure. They compare what you say you spend against a benchmark for a household your size, and against the transactions in your statements. A large gap between the two is one of the most common reasons an application slows down. 4. Deposit, loan-to-value and debt-to-income. Your deposit affects which lenders will consider the application and how it is priced. Banks also work within debt-to-income restrictions, which cap total debt against income regardless of how strong the deposit is. In practice: reduce unused credit limits, avoid new finance in the three months before applying, and gather documents early. If you want a realistic number for your own situation, book a free chat and we will work through it properly.