How to Increase Your Loan Amount: 5 Effective Ways

You applied for a mortgage loan, the bank approved it, but for a smaller amount than you expected. Let’s look at why this can happen and what you can do to increase your loan amount.

Before approving a mortgage, the bank assesses the borrower’s financial capacity and reliability. If the decision is positive, the bank informs the client of the amount, interest rate, and loan term it is ready to offer. It often happens that a borrower expects one amount, but the bank approves a smaller limit. If the approved amount is larger than expected — great. You are not required to use the full limit. But if the bank offers less than you need, buying the desired property may become impossible.

Let’s discuss how you can try to increase the already approved loan amount and what factors banks consider when calculating the amount they are willing to lend.

What the Bank Considers When Calculating a Loan

Each bank uses its own methods to determine loan size, but generally, the following factors are taken into account:

• Amount of the down payment;
• Borrower’s monthly income;
• Loan repayment term chosen by the borrower;
• Marital status and number of dependents;
• Assets owned, such as real estate or a vehicle;
• Other existing credit obligations;
• Borrower’s financial discipline — previous loan delays, unpaid debts, alimony, utility bills, etc.

After analyzing this information, the bank informs the applicant of its decision and the approved loan amount. However, after receiving the decision, you may adjust certain factors to influence the final loan amount.

Contact the loan officer managing your application and ask how you can increase the approved amount. Most likely, one of the following options will be suggested. Your request will be reviewed again, and the bank will issue a new decision. There’s no guarantee it will be positive, but it’s worth trying.

Method 1. Extend the Loan Term

The simplest way to increase the loan amount is to extend the repayment period. This reduces your monthly payment, which means the bank can approve a higher total loan since the required income threshold becomes lower. However, this method is not the most profitable — a longer loan term means significantly higher total interest payments.

Method 2. Declare Additional Income

Another effective way to increase your mortgage limit is to demonstrate additional income sources. For instance, if you have a side job, earn interest on deposits, or rent out property such as a garage, provide documents confirming these earnings. This can help increase your approved loan amount.

Method 3. Add a Co-Borrower

You can increase your mortgage size by including a co-borrower — someone who shares responsibility for repaying the loan. When reviewing the application, the bank considers the combined income of both the borrower and co-borrower, which can significantly raise the available amount.

Method 4. Repay Existing Loans

If you already have outstanding debts, the bank may reduce your mortgage amount, since part of your income is already allocated to other financial obligations. Close your existing loans and credit cards, and make sure to provide confirmation documents proving repayment.

Method 5. Withdraw as a Guarantor

Acting as a guarantor for someone else’s loan means you’ve promised to repay their debt if they can’t. This reduces your appeal as a borrower, since the bank views it as an additional financial risk — you might have to cover another person’s loan, which impacts your repayment capacity. Withdrawing from a guarantor role can therefore improve your creditworthiness and potentially increase your mortgage approval amount.

Can the Bank Change the Terms Again After Re-Approval?

Suppose your loan amount was increased after a second review. It may seem like everything is settled, but the approved terms are not a guarantee. The bank can still revise them — reducing the amount, increasing the rate, or even refusing to issue the loan.

This can happen if your financial situation changes and the bank learns about it — for example, if you apply for another large loan, raise your credit card limit, or change jobs, moving from a stable company to a startup. Before finalizing your mortgage, it’s best to avoid any changes that might affect your creditworthiness. Otherwise, you risk losing the approved amount altogether.

If none of these methods work, consider applying for a mortgage at another bank. The preparation you’ve done may actually help improve your borrower profile, and another lender might approve the full amount you initially wanted.