Borrowing capacity

Is it possible to have a guesstimate of my borrowing capacity based on the below?

I bought a property last year. Before borrowing the property, my mortgage broker said I could borrow for a property worth $900,000.

I ended up purchasing a property for $700,000 and now am owing $580,000. I've paid off about $5000 off the loan. Property is still worth $700,000 (no change).

Since purchasing the property, I started a small side business. Earning $15,000 per year. I did not have this side business before I purchased the property and so it was not taken into account for my original capacity.

My full-time income, expenditure and debts have not changed compared to be before I purchased this property. Only difference is the addition of this small side business.

I still live at home. I have about $60,000 in my offset account. The property that I purchased is an IP.

I will discuss with a broker after the financial year. But thought I'd get your opinion.

Thanks

 

Sorry, not even remotely enough info to give you an estimate.

You can't compare your borrowing capacity today with what it was at some random point in the past, with a lender you haven't disclosed. It just doesn't work as all lenders calculators get updated at least 4 times a year.

Full disclosure of your financial circumstances are required to get an accurate idea of your serviceability.

 

No income or expenses listed...

 

Whats your income, including side business and rental?
Does your property make rental income or do you living in it?
$580k debt we know. Any other debt? HECS? Whats your total credit card limit?
Bank doesn't see the money in offset. The cash is handy to cover any shortfalls in lending.

With info for the above you can get closer to estimating borrowing capacity. I dont think it'll be as generous as simply $900k minus $580k, given lending conditions are even tighter now than a year ago.

 

Total income = $100,000 (full time job) + $15,000 (side business) + $16,000 (rental). So total income would be $131,000. This is all before tax.

Debt: no debt at all, no hecs debt, don't have car.

Credit card limit is $12,000.

Expenses: I live at home, pay board so it's about $1200 per month.

Thanks guys for your posts. I naively thought it would be a simple calculation like 900k-580k. I'll definitely talk to my bank sooner rather than later.

 

Thanks. I naively thought it would be a simple equation. Silly me

 

I thought you had a mortgage - this is not "no debt at all"!
Quite likely the CC limit and/or outstanding balance will affect the calculation.

 

Yeah you're right. I do have a mortgage debt of 580k. No other debt.

 

Except the CC
Regardless if you don’t even use it, it is considered a liability and with a 12k limit you can expect quite a hit to your servicing.

 

True that