How to maximise your borrowing potential.

There are a number of things you can do ahead of applying for a loan that will improve your chances of success with main-stream lenders.


Reduce the number of credit cards you have

Lenders look at your maximum limit, not how much you owe. The higher the limit on your credit cards, the less you can borrow on your new home loan.

Review your credit history

This includes keeping your bills up to date, and and if you have other loans, making sure that you don’t fall behind. Generally speaking, there's not a chance in hell that a lender will give you more money if you're already behind on your existing debts.

Applying for a loan

If you apply to multiple lenders, when they receive your application, each lender will do a credit check. The more credit checks you have on your credit report these days, the less chance you have of getting a home loan. Lots of credit enquiries signals that you may have had issues with other lenders and your application may not be looked upon favourably.

Other loans

If you’re contemplating buying a property but think that you might buy a new vehicle first... think again. If you're serious about a property purchase, having a large monthly commitment against a vehicle is a real no no. Because a vehicle loan is normally over a shorter period, the monthly repayments are higher, which again, will reduce your borrowing power on a home loan. Buy the vehicle after you purchase your property... but only if you can afford it.


Showing the lender that have the ability to save over a long period of time lets them know that you're responsible and capable with your money. The more deposit you have when buying a property, the easier it is to secure a home loan. Just like saving money, buying a property is a big commitment. You need to be ready.