Understanding your borrowing power early helps you set a realistic budget before you start searching.

It allows you to:

• Focus on properties within reach

• Avoid over-committing or under-targeting

• Move faster and more confidently when opportunities arise

Think of it as your financial boundary before entering the market.

Borrowing power is based on a combination of factors, including:

•  Income (salary, bonus, rental, etc.)

• Living expenses ( HEM or  declared spending)

• Existing debts and liabilities

• Interest rate buffers applied by lenders

• Loan term and repayment type

Each lender uses its own model, but the core idea is simple:

Borrowing Power ≈ (Assessable Income − Expenses − Existing Debt Repayments) ÷ Stressed Repayment Factor

No — Different lenders may:

• Treat income differently (some accept 100% of bonus, others don’t)

• Apply different buffers ( typically 3%，though some lenders may apply 1%）

• Vary in expense models  ( HEM vs self declaring )

This means your borrowing capacity can vary significantly across lenders.

In many cases, borrowing capacity can be improved with the right structure. Common strategies include:

• Reducing or restructuring existing debts

• Selecting a lender that better suits your income profile

• Adjusting the loan structure ( eg. extended loan term )

Small changes can often lead to a meaningful increase in borrowing power.

A calculator gives you a starting point — but not the full picture.

For a more accurate estimate, you’ll need a broker assessment, which takes into account:

• Real lender policies

• Full financial profile

• Scenario-based structuring

Instead of a single number, you’ll get a lender-aligned borrowing range you can actually rely on.