The term borrowing power means the amount you can borrow from your lender. More borrowing power one has gives more chances to get eligible for a loan, and more chances of getting approved for the credit limit requested.
It does provide you with an estimated amount that you can borrow. It is based on three factors: income, expenses and loan rates entered. Note that the borrowing power is calculated on a custom model which can differs from lender to lender. The purpose of this calculator is to merely give an indication of what a lender could offer you, based on some of your basic incomes and financial commitments. You’ll only know how much you can borrow for certain when you apply and receive conditional approval for a maximum borrowing amount on a loan. It is not necessary that this loan will be used particularly to indicate the loan amount you may require, the upfront cost that may be incurred by you and repayments that you will make if you took out that amount as a loan.