Borrowing power refers to the amount of money a lender is willing to lend you for various purposes, it can be anything from buying a house, your investment property, a new car, a business, sofa or just about any other financial need.

The borrowing power is determined based on several factors and the exact process may vary depending on the type of loan you're seeking and the lender's specific requirements.

Here are a few of the general steps to improve your borrowing power....(the lover thing was a bit of a joke). 1 Income and Employment Stability:

Lenders typically want to see a stable and regular income to ensure you can meet your loan repayments. The higher your income, the more borrowing power you can potentially have. But a steady job history can also positively impact your borrowing power. 2 Credit Score and History:

A good credit score demonstrates your ability to manage credit responsibly. Lenders will assess your credit history to determine the level of risk associated with lending to you. A higher credit score can increase your borrowing power. 3 Debt-to-Income Ratio:

Lenders analyse your debt-to-income ratio, which is the percentage of your monthly income that goes towards debt payments (including rent/mortgage, credit cards, and other loans). Keeping your debt-to-income ratio low can enhance your borrowing power. 4 Assets and Liabilities:

Your assets (e.g., savings, investments) can improve your borrowing power, while excessive liabilities (e.g., outstanding debts) may reduce it. 5 Loan Purpose and Collateral:

The purpose of the loan and whether you have any collateral to secure it can impact your borrowing power. Collateral provides the lender with security in case you default on the loan.

6 Loan Term:

The length of the loan term can also influence your borrowing power. Longer loan terms may result in lower monthly payments but could limit the total amount you can borrow. 7 Loan-to-Value Ratio (LVR): For certain types of loans (e.g., mortgages), the lender may consider the loan-to-value ratio, which compares the loan amount to the value of the asset being financed. A lower LTV ratio can increase your borrowing power. 8 Lender's Policies:

Different lenders have varying criteria for assessing borrowing power. Shop around and compare offerings from multiple lenders to find the best fit for your financial situation. To improve your borrowing power, work on maintaining a stable income, building a strong credit history, managing your debts responsibly, and accumulating assets.

You might also want to consider seeking some professional financial advice to better understand your specific situation and options for maximizing your borrowing power.