Increasing your borrowing power is one of the smartest steps you can take before applying for a home loan. Lenders assess your income, expenses, existing debts, and credit score to determine how much you can borrow. A few strategic adjustments can make a big difference.
Start by reviewing your monthly spending. Cutting back on discretionary expenses—subscriptions, takeaway meals, or unused memberships—can improve your serviceability. Reducing credit card limits is another effective move. Even if you don’t use the full limit, lenders count the entire amount as potential debt. Clearing personal loans or Buy Now Pay Later accounts can also increase your capacity.
Boosting your income through overtime, a second job, or rental income may further strengthen your profile. Maintaining a clean repayment history and checking your credit report for errors are also essential for a strong application.
A mortgage broker can run borrowing-capacity calculations with different lenders and show you how small adjustments impact your maximum loan size. With the right preparation, you can position yourself for a stronger approval and a wider choice of lenders.
