Itqualityassurance
How much can you borrow with an existing mortgage?
Lenders will likely lend you no more than 80% of your home's current value. To calculate your home's usable equity, take 80% of the value of your property minus your outstanding loan balance.
How do you calculate borrowing capacity?
Generally speaking, your borrowing power is calculated as your net income minus your expenses. Your expenses can be impacted by things like the number of dependents in your family, any current home or personal loan repayments and other financial commitments such as private health insurance.
