Unlock a Bigger Budget: 7 Ways to Maximise Your Gold Coast Borrowing Power

Have you ever been given a home loan borrowing estimate and felt it was lower than you expected? The good news is that your borrowing power isn't a fixed number—it's a dynamic figure that you can actively improve with a clear strategy.

Making a few smart moves in the months before you apply can significantly increase the amount lenders are willing to offer you for your Gold Coast property purchase. Here's your 7-step action plan.

1. Slash Your Credit Card LimitsThis is the fastest and most effective way to boost your borrowing power. Lenders don't just look at your credit card balance; they assess your total credit limit. They calculate your potential repayments as if your cards were maxed out. Cutting a $20,000 limit down to $2,000—even if you owe nothing—can add tens of thousands of dollars to your borrowing capacity overnight.

2. Reduce Your Existing DebtsYour existing financial commitments have a direct impact on how much you can borrow. By paying down or paying off personal loans, car loans, and even your HECS/HELP debt, you free up more of your income in the eyes of the lender, proving you have more capacity to handle a mortgage.

3. Tame Your Buy Now, Pay Later (BNPL) AccountsLenders now view services like Afterpay and Zip as financial commitments. Before you apply for a home loan, it's wise to close any accounts you don't regularly use and lower the credit limits on the ones you keep.

4. Demonstrate a Consistent Savings HistoryFor at least three to six months before you apply, show the lender you have strong financial discipline. Set up a regular, automatic transfer into a dedicated savings account on every payday. This proves you can manage your money and handle future mortgage repayments.

5. Review Your Daily Spending HabitsIn the lead-up to your application, be mindful of your discretionary spending. Lenders will review your bank statements to assess your living expenses. Reducing your spending on things like food delivery, online shopping, and multiple subscriptions will present a stronger financial picture.

6. Maintain a Stable IncomeLenders love stability. If you're a casual employee or self-employed, they will want to see a consistent history of income over a period of time. If you're considering changing jobs, it's often best to wait until after your home loan has settled.

7. Talk to an Expert BrokerThis is the most important step. Every lender has different policies and calculates borrowing power differently. Some are more generous with overtime and bonuses; others look more favourably on the self-employed. Our job is to take your improved financial snapshot to the lender that will give you the absolute maximum borrowing power for your specific situation.

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