Need a little extra so you can buy your dream property? Here are 4 tips that can help maximise your borrowing power.

Need a little extra to buy your dream property? Hint: Tip #3 can help get you an extra $25,000 in borrowing power almost instantly

Hint: Tip #3 can help get you an extra $25,000 in borrowing power almost instantly**

If you’re looking to maximise your borrowing power, then this case study will show you how to get more from lenders. Scott is a Business Development Manager who wanted to buy a property for $635,000. But he was having trouble raising the money because his income came from incentives, bonuses and commissions rather than a full time salary. Since lenders treat full time salaries differently, they looked at Scott as a “riskier bet”. So we worked with him to maximise his borrowing power. If you’re in a similar situation – or if you’ve found a property that’s outside your existing borrowing capacity – here are a few handy tips that will get lenders offering you more:

Tip #1 – Get That Pay Rise

Most people don’t know that even the slightest raise in income can yield a tremendous increase in borrowing power. In fact, as little as $10,000 delivers up to $50,000 in newfound borrowing power! Below is a chart showing how much extra lenders are willing to offer based on increases in income. As you can see, it’s possible to borrow as much as $200,000 on an extra $40,000! That number can be even higher if you’re expecting a pay rise. What is the maximum amount you could borrow on a home loan, based on your current salary? This assumes two married applicants with a total household income shared between them evenly, no dependents, living in the Sydney metro area, with living expenses based on HEM. Maximum borrowing power is based on a principal and interest repayment over 30 years at an assessment rate of 7.3% p.a.

Tip #2 –Keep Documents That Verify Your Income

A quick and easy way to maximise your borrowing power is to have your paperwork handy. It sounds obvious but lenders only assess you based on your declared income. Unfortunately, many people seek financing based on a word and handshake. This costs them borrowing power, oftentimes hundreds of thousands! If you’re an employee: avoid frustration and get your pay slips in order – you’ll need at least 6 months. If you have a second income, pull that documentation together. If you’re applying for a loan with a partner: ensure they have all their documentation too.

Tip #3 – Pay more tax

If you’re self employed: you may be seeking to minimise your income to lower tax. But again, remember, lenders only assess you on your declared income. As you will see in the table below, an extra $30,000 in declared income can increase your borrowing capacity by almost $200,000! So be sure to talk with your accountant and a qualified mortgage expert before making any decisions about your financial goals. This assumes a single applicant with no dependents, living in the Sydney metro area, with living expenses based on HEM. Maximum borrowing power is based on a principal and interest repayment over 30 years at an assessment rate of 7.3% p.a.

Tip #4 –Slice Up Those Credit Cards

This is another easy way to maximise your borrowing power. With credit cards, lenders don’t just look at your spending patterns – they assess you based on your credit limit. So if you only spend $1,000 per month on your card, but have a limit of $10,000, lenders assess you on the full $10,000. In terms of borrowing power, that’s up to $45,000 less you can borrow! Below is a chart showing how to magnify your borrowing power by losing those credit cards. This graph demonstrates how reducing your credit card limit can increase your borrowing power by as much as $87,000. The scenario in this graph assumes two married applicants with a total household income of $90,000 a year, shared between them evenly, no dependents, living in the Sydney metro area, with living expenses based on HEM. Credit card payments are calculated at 3% of the credit card limit. Maximum borrowing power is based on a principal and interest repayment over 30 years at an assessment rate of 7.3% p.a.

Borrowing Power is NOT a Fixed Number

Here’s a final tip to remember: your borrowing power is NOT a fixed number. As you’ve learnt in this article, it’s possible to magnify your borrowing power – sometimes based on a few extra pay slips! Plus, your borrowing power will vary from lender to lender too. So make sure you work with a qualified expert who knows which lenders to approach based on your unique situation. And, as always, consider loan amounts suited to your circumstances and capacity. Need a home loan?UNO. The new way to get a better deal. Get StartedBook a call in with UNO

Book Call Now

Book Call Now

UNO home loans

Need help with your home loan?

UNO Brokers are available night and day for a quick review or your situation and bring expertise that will support better decision making that will save you time and money. Book in a quick call when it suits your busy schedule

Get Started

Related Articles


What our customers are saying

Marlon Baena
July 22, 2024
Karis dedication to assisting with our home loan, even while I was on holidays, truly exemplifies a commitment to excellent service. It's the small things that often make a big difference, and it seems Karis attention to detail and clear communication were key to our smooth home purchase. I highly recommend using UNO and Karis for your home loan needs.
Read more
Olivia Gill
July 18, 2024
We recently used UNO Home Loans to assist us with securing our new mortgage in AU (had moved here from NZ). We had Michael Parsons as our mortgage broker and he was extremely responsive and helpful the whole way through the process. Was a great experience and definitely recommend :)
Read more
Yash Karma
July 18, 2024
Andrew Wyers and team have been amazing. Andrew is very knowledgeable, offers practical advice and he has been pivotal in helping me secure a mortgage at a very competitive interest rate. He was highly responsive to my queries and,being a new immigrant to Perth, he was very patient with my many many questions. An added benefit for me was his knowledge of how superannuation here works. A hec of a great guy to work with, reliable and he goes above and beyond. I would recommend highly recommended him, especially for new immigrants. In fact, I will be using him again very soon!
Read more
Rosie Deiath
July 2, 2024
Karis from UNO was so supportive throughout the entire process of buying our first home. She was contactable at any time, and answered all our silly questions for us. We couldn't recommend Karis and her team enough, as it always felt like she was in our corner with our best interests at heart.
Read more
Jack Mikkelsen
July 2, 2024
We dealt with Karis Churchill as the mortgage broker for our first home. Karis was so supportive and knowledgeable through the whole process! A+ mortgage broker. Definitely utilise her expertise if you’re buying a house!
Read more
Kapil Baldota
June 25, 2024
Eren Tan is absolutely one of the best mortgage brokers in Melbourne! Keeping us well informed throughout the process. Eren gave us a helpful hand in managing to get our loan over the line in a quick and efficient way which is what we wanted and he delivered on that. Thank you Eren Tan!
Read more
June 21, 2024
I only have praise from my Uno experience! I was a broker sceptic, having done all of the hard work myself for my first two property purchases and sale. I'm now a proud broker advocate having used UNO (Karis Churchill) for two refinances and purchase. The value add Karis brought cannot be underrated! Not only has Karis got me the best rate, with a bonus cash back (nearly unheard of in this climate), she has done it with the least back-a-forth and with the least administrative burden on me (the thing that can deters people from refinancing to begin with). Karis is always on top of everything. Karis knows her stuff. She is the most responsive of any professional service provider I've ever used (my banker never text with an update at 7pm on a Sunday) without being overbearing. You know she's got your back and in my experience the value speaks for itself. Thank you to the whole UNO team, thank you especially to Karis.
Read more
Leanda Cawdry
June 8, 2024
Very pleased with the outcome of this process, Michael Parsons and his team at UNO were helpful, communicative, and took all the stress out of the process of finding me a refinance deal that met my needs. Would definitely recommend Michael and UNO, and I already have!
Read more
Glen Matthews
May 29, 2024
Regarding UNO Home Loan services. I had great experience with uno home loans, Michael parsons was my broker for UNO Home Loans we had excellent communication throughout the whole home loan application. If I had any questions on home loan application which were many were answered in great detail. He had the time to assist me in filling out endless application forms at anytime through the day or night which made the application process stress free. So I would strongly recommend Michael parsons from UNO Home Loans to try his services you will not be disappointed. Thanks to Michael parsons I have the lowest home loan interest rate I could ever hope for which I particularly ask for. It’s was a pleasure working with him. And will be using his services in the near future.
Read more
Gillian Anderson
May 28, 2024
Thank you to Michael and UNO for their help in securing our home loan. I like the way they break everything down in simple terms to ensure that you can make the right decision. Michael was polite and very patient to help us get things across the line. We are now sitting in our first home away from rental circus. Can't recommend them enough. Thanks Michael and thanks UNO
Read more
Andy Song
May 17, 2024
Amy has been absolutely wonderful as a broker. I would not hesitate one bit in recommending her services.
Read more
Troy H
May 13, 2024
Scott Wilkinson did a great job as my broker. He was very patient and always happy to answer my numerous questions throughout the considerable period of time that it took to secure a suitable property. Would certainly recommend Scott and the team at UNO for anyone seeking a broker.
Read more