When it comes to mortgages, size really does matter. Having a good understanding of your borrowing capacity can save you a lot of time wasted looking at properties well above or below the price bracket you are wanting to target.

There are many resources online that you can tap to help you determine roughly how much you can borrow. However, it's important to remember that these online tools are generic and do not detail the different policies and approaches they may offer to your particular circumstances. In actual fact, as part of your application for a home loan, your lender will take a number of specific factors into account when assessing your borrowing capacity.

Haley North, mortgage advisor from Smartmove reveals practical tips to ensure you stay within safe borrowing limit. The full article can be read in the June issue of Your Mortgage on news stands NOW!