1. Unused credit card limits
Lenders assess a credit card as if the full limit is drawn, typically at around 3% of the limit per month. A $20,000 limit you never use can reduce borrowing power by tens of thousands. Reducing or closing cards before applying is one of the fastest wins.
2. Buy-now-pay-later and small debts
BNPL accounts, car leases and personal loans all appear on your credit file and in the servicing calculation. Even small monthly commitments add up when the lender multiplies them over a 30-year assessment.
3. HECS-HELP
Your study debt repayment is taken from your income before the lender looks at what is left. Some lenders treat it differently, particularly if the balance is close to paid off.
4. Living expenses
Lenders compare your declared expenses with benchmarks and your bank statements. Under-declaring creates problems at assessment; over-declaring costs capacity. Three months of clean statements helps.
5. The lender itself
The single biggest variable is which lender assesses you. Calculators differ on rental shading, bonus and overtime income, and existing debt. The same file can produce very different results across the panel.
General information only. It does not consider your objectives, financial situation or needs. Speak with a licensed adviser and your accountant before acting. See our Disclaimer.
