It's More Than Just Your Income: A Gold Coast Guide to Real Borrowing Power

One of the first questions every aspiring home buyer asks is, "How much do I need to earn to buy a home on the Gold Coast?" While it's a great question, the answer is never a simple income number.

Lenders look at a much bigger picture to determine your real borrowing power. Understanding this picture is the key to unlocking your true potential. This guide explains the four key pillars that lenders actually assess.

Pillar 1: Your Income (The Starting Point)

Your income is the foundation of the calculation, but it's not just about the total figure on your payslip. Lenders will assess:

• The Type: Is your income from a stable full-time salary, or is it from casual work, self-employment, or commissions?
• The Consistency: They will want to see a consistent history of earnings.
• The Components: Some lenders may only accept a portion of your bonus or overtime income.
• Our expertise lies in knowing which lenders are most favourable for your specific income type.

Pillar 2: Your Expenses (The Big Reducer)

This is a huge part of the equation. Lenders will conduct a detailed analysis of your bank statements to understand your real-world living expenses—from your grocery bills and subscriptions to how many dependents you have. The higher your regular expenses, the less disposable income you have to service a loan.

Pillar 3: Your Liabilities (The Handbrake)

Your existing debts have a massive impact on your borrowing power. Lenders will look at the total monthly repayments for:

• Credit card limits (not just the balance)
• Car loans
• Personal loans
• HECS/HELP student debt

Reducing these liabilities, especially cutting down your credit card limits, is one of the fastest and most effective ways to increase the amount you can borrow.

Pillar 4: Your Deposit (The Accelerator)

The size of your deposit is critical. A larger deposit not only reduces the size of the loan you need but also lowers the lender's risk, which can give you access to better deals. Lenders also love to see a history of "genuine savings," as it proves you have strong financial discipline.

Bringing It All TogetherAs you can see, two people earning the exact same salary can have vastly different borrowing capacities based on these other factors. It’s a puzzle with many moving parts.

Stop guessing what you might be able to borrow. We can analyse all four pillars of your financial situation to give you a clear, accurate borrowing figure and a strategic plan to help you reach your Gold Coast property goals.

‍