Maximising Your Borrowing Power: What You Can Do Today

When you’re preparing to buy a property — whether it’s your first home, your next home, or an investment — one of the most important questions is: How much can I borrow? Your borrowing power determines what price range you can realistically aim for and how comfortable your repayments will be. Lenders look at your financial situation, your existing commitments, and your future ability to meet repayments before approving a loan.

Here are some effective strategies to boost that borrowing capacity — follow them thoughtfully and you’ll be in a stronger position when clients or you are ready to move.

1. Know What Lenders Assess

• Before you do anything else, understanding how borrowing power is calculated helps you prioritise the right steps. Key factors include:
  • Your income — regular salary, bonuses, commissions, other verified income streams.
  • Your expenses and liabilities — monthly living costs, credit‐cards, car loans, HECS/HELP debt, etc. Even unused credit card limits count as potential liability.
  • Your debt-to-income ratio (DTI) — this is how your total debt burden relates to your income. Lower is better.
  • Your deposit / equity — a larger deposit means you need to borrow less, and often gives more borrowing power.
  • Other factors: credit history/score; the loan type; loan term; interest rate buffers; and how lenders assess “stress-testing” your repayments.

  One useful online tool is a borrowing-power calculator (for example with major banks) which gives you a ballpark of what you might qualify for.

2. Boosting the Key Drivers

Now that you know the mechanics, here are practical ways to improve your profile and increase how much you can borrow.

• Increase your income

More income = more repayment capacity (all things equal). You might:

• Seek a pay rise or promotion.
• Add a side income stream (part-time work, freelance, business) which can be verified and sustained.
• Review how your bonus/commission structure is treated by lenders. Some only count a portion unless the income is consistent.

• Reduce your liabilities and expenses

This one matters a lot. More “free cash flow” means the lender sees you as less risky. You could:

• Pay down or eliminate personal loans, car loans, credit-cards and other debts.
• Reduce unused credit limits (for example, close cards you don’t use) — unused credit is still considered a liability.
• Trim living expenses / subscriptions / non-essential spending so your regular outgoings shrink, boosting your surplus.

• Build up your deposit / equity

A larger deposit not only reduces how much you borrow, but shows savings discipline and may reduce interest costs or Lenders Mortgage Insurance (LMI). ‘Genuine savings’ matter: showing consistent savings over time is a plus.

• Choose a longer loan term (if appropriate)

Stretching out the term of your loan can reduce the monthly repayment and thus improve what you can borrow — but it comes at the cost of more interest over time. Use it carefully.

• Improve your credit history

A clean credit record signals reliability. Steps include:

• Making all payments on time (cards, loans, utilities)
• Avoiding multiple credit applications in short time (which can flag risk)
• Checking your credit report for errors and correcting them.

• Understand and select the right lender/loan product

Different lenders assess the same borrower differently — rates, buffers, treatment of income/expenses vary. Shopping around (and working with a broker) can unlock more borrowing power.

3. Practical Checklist Before You Apply

Here’s a quick checklist you (or your clients) should work through before submitting a home-loan application:

• Review your income: are all income streams verified and consistent?
• List all current debts & liabilities (including card limits, BNPL, car leases).
• Review recent 3-6 months of bank statements to check living expenses and discretionary spending.
• Save for as large a deposit as possible (aim for 20% if you can).
• Check your credit report for any issues or errors.
• Consider your future: Will your income stay stable or grow? Are major life changes coming?
• Compare lenders (or consult a mortgage broker) to find one with favourable assessment policies for your situation.
• Use a borrowing-power calculator to estimate how much you may qualify for.
• Avoid taking on new debt or large purchases (e.g., car or major holiday) until after your loan settles.
• Have a buffer in your budget: even though you may technically qualify for a certain amount, make sure repayments are comfortable in various scenarios (interest rate rises, income changes, etc.).

Final Word

Maximising your borrowing power isn’t about “borrowing as much as you can just because you might”. It’s about preparing yourself, selecting the right product, cleaning up your finances, and ensuring long-term sustainability. The aim is to borrow what you can afford — not just what you’re allowed — so that you’re comfortable, secure and set up well into the future.

The strategies above will help you position yourself strongly. If you’d like help with a personalised borrowing-power estimate, or want a comparison tool of how different loan terms / deposit scenarios affect what you can borrow — We’d be happy to pull one together for you.

This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice.