Want to Borrow More for Your Home Loan? Here’s How to Boost Your Borrowing Power
Trying to borrow more but feel like the banks are holding you back?
Whether you're buying your first home, upgrading, or investing, boosting your borrowing power can make a big difference.
The good news is there are some practical and surprisingly simple ways to improve how much you can borrow. Direct Mortgages Wollongong is here to guide you every step of the way.
First Things First: What Is Borrowing Capacity?
Your borrowing capacity is how much a lender is willing to loan you based on your income, expenses, debts, credit history, and a few other factors. It’s essentially the bank’s way of deciding what you can afford to repay.
The good news is it’s not set in stone. With a few adjustments and the right advice, you can often increase your borrowing power more than you might expect.
That’s where Direct Mortgages Wollongong comes in. We know what lenders are looking for and can help you maximise your application.
6 Ways to Increase Your Borrowing Capacity
1. Reduce Existing Debts
Credit cards, car loans, Afterpay—every dollar you owe reduces how much you can borrow. Clearing these can instantly boost your capacity. Direct Mortgages Wollongong can help you prioritise which debts to pay down first.
2. Cut Unnecessary Expenses
Lenders look closely at your spending habits. Cutting back on things like subscriptions, takeaway, and impulse buys, even temporarily, can work in your favour.
3. Increase Your Income
If you’ve recently had a pay rise, bonus, or started a new job, let your broker know. Even taking on a side hustle can help. Direct Mortgages Wollongong will make sure your updated income is presented clearly to lenders.
4. Consolidate Loans
If you’ve got multiple small loans or credit cards, consolidating them into one can simplify your finances and improve your cash flow. Direct Mortgages Wollongong can recommend lenders who support this strategy.
5. Adjust Your Loan Term
Extending your loan term from 25 to 30 years, for example, can reduce repayments and boost borrowing capacity. It’s not for everyone, but Direct Mortgages Wollongong can help you weigh up the pros and cons.
6. Use a Specialist Broker
Every lender has different rules and calculators. Working with a broker like Direct Mortgages Wollongong is a game-changer. We know which lenders are more flexible and who’s more likely to say yes based on your unique situation.
The Bottom Line
You don’t have to earn six figures or give up your morning coffee to increase your borrowing power. You just need the right strategy and the right broker. Whether you're trying to get your foot in the door or stretch your budget for that dream home, Direct Mortgages Wollongong is ready to help.
We’ll assess your current situation, suggest simple changes, and match you with a lender that fits your needs—not just one that fits a formula.
Reach out to Direct Mortgages Wollongong today and discover how far your budget can really go. Your dream home might be closer than you think.