The recent tax cuts did more than just increase your take-home pay—they boosted your home loan borrowing power. This guide explains how having a higher net income means you can likely borrow more for your Gold Coast property purchase. If you haven't had your borrowing capacity assessed recently, you could be underestimating your budget.
Since the government's recent tax cuts took effect, most Australians have been enjoying a little extra in their pay packet each week. But this extra cash does more than just help with the cost of living—it has a direct and powerful impact on your ability to get a home loan.
In short, you can likely borrow significantly more for your Gold Coast property purchase now than you could before the changes. If you've been sitting on the sidelines, it's time to take another look.
How it Works: More Income = More Borrowing Power
When a bank assesses your home loan application, one of the most critical factors is your 'net disposable income'—that's your income left over after tax and estimated living expenses.
Because the tax cuts increased your take-home pay, your net income is now higher. From a lender's perspective, this means you have a greater capacity to service a loan, so they are willing to lend you a larger amount.
What Does This Mean for You in Real Terms?
For many aspiring Gold Coast buyers, this boost in borrowing power is a genuine game-changer.
- It might mean you now qualify for a home loan when you were just falling short before.
- It could increase your total budget by $30,000, $50,000, or even more, depending on your income.
- It could be the difference that allows you to buy that slightly larger home, or get into your preferred suburb like Mermaid Waters or Burleigh Heads.
It's Time for a Fresh Assessment
This is the most important takeaway: if you received a borrowing capacity estimate more than 12 months ago, it is now out of date.
Any assessment done before the tax cuts took effect is not reflecting your true, current borrowing power. Relying on old figures could mean you are unnecessarily limiting your property search and missing out on homes you can now actually afford.
Furthermore, every lender assesses income and applies the changes differently. As your mortgage broker, our job is not only to factor in the tax cuts but to also take your specific situation to the lender who will grant you the maximum possible borrowing capacity.
Don't let an old assessment hold you back from your Gold Coast property dream. The landscape has changed in your favour.
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You Can Borrow More Than You Think: How Tax Cuts Have Boosted Buying Power on the Gold Coast
The recent tax cuts did more than just increase your take-home pay—they boosted your home loan borrowing power. This guide explains how having a higher net income means you can likely borrow more for your Gold Coast property purchase. If you haven't had your borrowing capacity assessed recently, you could be underestimating your budget.