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How to improve your borrowing capacity
Self-Employed Home Loan
Stage 5 / 6 · Borrowing capacity

How to improve your borrowing capacity

Clean up unsecured debt, manage credit cards (the limit matters more than the balance), and consider a partner co-applicant. Three levers that move the calculator more than rate-shopping.

10 min readBy Daniel WongStage 5 of 6
A $20,000 credit card limit reduces your borrowing capacity by ~$80,000, even if the balance is zero.

Three levers worth pulling

Reduce credit card limits before applying. Pay down or pause Buy Now Pay Later. Consider a partner co-applicant if their income is stable PAYG, since lenders treat PAYG income very differently to self-employed income.

Borrowing power calculator

Borrowing Power Calculator

Estimate how much you could borrow based on your income

Annual Income (before tax)
$100,000
$30,000$500,000
Monthly Expenses
$2,000
$500$10,000
Existing Monthly Debt Repayments
$500
$0$5,000
Number of Dependents0
Your Estimated Borrowing Power
$0
Based on current market conditions

This is an estimate only. Actual borrowing capacity depends on individual circumstances, lender policies, and credit assessment.

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WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees, or other loan amounts might result in a different comparison rate. Comparison rates are based on a secured loan of $30,000 over 5 years for vehicle finance and $50,000 over 5 years for equipment finance, as required under the National Credit Code.