How Much Can You Borrow? Key Factors That Decide Your Loan Limit

When you ask how much can you borrow, the maximum amount a lender will offer you for a property based on your financial profile, you’re really asking: Can I afford this? It’s not just about how much you earn. Lenders look at your debt, your credit score, your job stability, and even the neighborhood you’re buying in. A high income doesn’t guarantee a big loan if your credit score is low or you’re already paying off student loans and car payments. In fact, many people overestimate what they can borrow—and end up stuck with payments they can’t keep up with.

Credit score, a three-digit number that shows how reliably you pay back money is one of the biggest gatekeepers. In places like New Zealand, a score near 900 can speed up approval and get you better rates. But even in India, where lenders don’t use the same system, banks still check your repayment history closely. Then there’s debt-to-income ratio, the percentage of your monthly income that goes to paying off debts. If you’re spending 50% of your pay on loans already, most lenders won’t give you more—even if you make ₹1 lakh a month. Your job matters too. Freelancers and contract workers often get turned down unless they’ve got two years of tax returns to prove steady income.

Location plays a quiet but powerful role. In Mumbai’s Mulund, property prices are higher than in smaller towns, so lenders adjust loan amounts accordingly. A ₹50 lakh loan might be normal here, but in a rural area, the same amount could buy you three times the land. And don’t forget closing costs, registration fees, and maintenance—those aren’t part of your loan, but they still come out of your pocket. Many buyers get approved for a certain amount, then realize they can’t afford the full package.

Some people think a bigger down payment means they can borrow more. It’s the opposite. A larger down payment means you need to borrow less. But if you’re putting down just 10%, lenders will push you toward the highest amount they think you can handle—and that’s where things get risky. The goal isn’t to borrow the max. It’s to borrow what you can comfortably repay for 15 to 20 years without stress.

Below, you’ll find real examples of how income, credit, and location shape borrowing limits across different markets—from Virginia to Auckland. You’ll see how renters in Baltimore County are capped by room rules, how land prices in West Virginia affect loan sizes, and why a 2BHK apartment in New Zealand might be the sweet spot for first-time buyers. These aren’t abstract theories. They’re real rules that affect real people trying to buy a home. Let’s break them down.