What a mortgage capacity report is
A mortgage capacity report estimates how much someone could borrow, based on their income, commitments, deposit and the criteria lenders apply. In financial remedies it answers a practical question: can a client afford the housing they say they need?
There are two kinds, used at different points in the case, and a decision in principle or mortgage offer at the end.
The ladder, stage by stage
First appointment
The indicative mortgage capacity report.
Free, produced by the platform in 3 minutes, for either party or both.
Financial Dispute Resolution
The maximum mortgage capacity report.
Prepared and certified by an independent broker, within 48 hours.
Final hearing
A decision in principle or mortgage offer, if one is needed.
It is free.
The indicative report: the first appointment
Paragraph 52(c) of the Financial Remedies Guide asks for brief indicative material on the parties’ respective borrowing capacities in the run-up to the first appointment. The indicative mortgage capacity report is the indicative material that paragraph 52 calls for.
It sets the cost of a property against income, expenses, deposit and the cash needed to buy. It shows the arithmetic and the evidence, and leaves the conclusions to you and the court.
What the Guide adds
Providing indicative material does not stop a party from later seeking to adduce formal evidence of the same kind. That is the job of the next report.
The maximum report: before the FDR
The maximum mortgage capacity report is prepared and certified by an independent, whole-of-market broker, and is court-compliant. It is the formal evidence of what a party could borrow, and it is what you put in front of the court and the other side at the FDR.
On FindMyHome it is uploaded within 48 hours, and updates are free. It is the broker’s view of what is achievable. It is not a recommendation to buy a particular product.
Why not an online calculator?
An online calculator gives a figure. A report from a certified broker is a different kind of evidence.
An online calculator
- Gives a single figure
- Does not show who produced it, or on what basis
- Cannot show whether a lender would actually lend
- Easy for the other side to challenge
A certified broker’s report
- Names the independent, whole-of-market broker
- Sets out the basis
- Reflects how lenders really assess the borrower
- Court-compliant, with updates free
Capacity is a ceiling, not a target
Used well, it lets you test a settlement position before you put it forward: if a proposal depends on a party borrowing more than the evidence says they can, you will know before the other side does.
How FindMyHome produces them
FMH Mortgages sits on the same platform as FMH Properties. The indicative report is included in every case, and a maximum report from a certified broker is part of the case fee.
Ready to get started? Book a free demo
A demo takes 30-45 minutes: we create a case on the fly and run it through the platform with you. We reply within 24 hours.