Borrowing capacity isn't just about your income, and it's not the same at every bank. Banks are also looking at your deposit, your debts, your spending, your credit history, and even the property you're buying to decide how much they're willing to lend you and how risky your loan looks to them.

In this episode, Jack Elliott and Chris Bates walk through exactly what banks assess when you apply for a home loan. As well as banks looking at your income, we discuss how they look at your deposit and genuine savings, why credit card limits matter more than what you owe, how HECS debt actually impacts your borrowing capacity, and how the property itself can sometimes impact if you can even borrow at a certain lender.

We also talk about the difference between what a bank will lend you and what's actually right for your situation, and why choosing the right lender from the start makes a big difference to your options now and into the future.

In this episode:

🔑 What banks look at when they assess your borrowing capacity

🔑 How your income, deposit, debts and expenses all factor in

🔑 Why HECS debt is changing and what that means for first home buyers

🔑 The difference between what a bank will lend you and what's right for you

🔑 How choosing the right lender can make a big difference to your options

Timestamps

00:00 - How Banks Assess You

01:38 - Assessing Your Income

04:37 - Assessing Your Deposit and Genuine Savings

08:11 - Assessing Liabilities: Credit Cards, Loans, HECS, BNPL

15:51 - Assessing Your Living Expenses and Bank Statements

19:52 - Credit History and Your Assessment

22:43 - How Banks Assess the Property

25:08 - Borrowing Capacity Summary and the Role of a Broker

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