Understanding how much you can borrow is key when selecting the right property. You don’t want to get your heart set on a purchase that you won’t get approved for. Whether you’re buying your own home or whether you’re buying an investment property it’s critical that you understand your borrowing capacity. 

By definition, your borrowing capacity is how much the lender assesses that you can afford to borrow based on your disposable income and the key part there is your disposable income.

Understanding how the banks determine your borrowing capacity is essential especially if you are still in the savings stage, or you want to change your current situation.