How the borrowing amount is determined?

Your borrowings are determined in accordance with your income and the worth of the property you intend to purchase. Also, different lenders may offer you different amounts. Usually it is three to three and a half times of your annual income.
Lenders will give you a loan up to 75 per cent of the property's value (Loan to Value ratio) but some may go to 95 per cent. Some creditors will even offer you up to 100 per cent but in that case you may end up paying abnormal rates and will probably also be forced to buy mortgage indemnity insurance.
Before granting a loan, the lender needs to ensure that the borrower’s repaying capacity is commensurate with the loan amount. The amount of borrowing also depends on your own circumstances. A married person having young children will have lower repaying capacity as compared to an unmarried person with same income. However, either advertently or inadvertently, a borrower may be able to get more than his repaying capacity. It is advisable that one should borrow only that much amount which he can comfortably pay back.