Knowing how much fund you can borrow is required to get the best approval on your loan. Banks will decide your loan application based on how much you’ll be able to repay your mortgage loan monthly. They estimate your payment by looking at your income, your available cash, your debt, and your credit history.

When you have known how much the banks will lend you, it didn’t mean you take that all amount to insert in your debt. You should take no more than 28% of your net income (after taxes) for your total payment to get breath for a comfortable lifestyle, funding for your retirement, going vacation, or even going out to eat. You don’t forget you still need the other funds of home ownership, such as repairs, maintenance, and higher utility bills.

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