Need a little extra so you can buy your dream property? Here are 4 tips that can help maximise your borrowing power.

Need a little extra to buy your dream property? Hint: Tip #3 can help get you an extra $25,000 in borrowing power almost instantly

Hint: Tip #3 can help get you an extra $25,000 in borrowing power almost instantly**

If you’re looking to maximise your borrowing power, then this case study will show you how to get more from lenders. Scott is a Business Development Manager who wanted to buy a property for $635,000. But he was having trouble raising the money because his income came from incentives, bonuses and commissions rather than a full time salary. Since lenders treat full time salaries differently, they looked at Scott as a “riskier bet”. So we worked with him to maximise his borrowing power. If you’re in a similar situation – or if you’ve found a property that’s outside your existing borrowing capacity – here are a few handy tips that will get lenders offering you more:

Tip #1 – Get That Pay Rise

Most people don’t know that even the slightest raise in income can yield a tremendous increase in borrowing power. In fact, as little as $10,000 delivers up to $50,000 in newfound borrowing power! Below is a chart showing how much extra lenders are willing to offer based on increases in income. As you can see, it’s possible to borrow as much as $200,000 on an extra $40,000! That number can be even higher if you’re expecting a pay rise. What is the maximum amount you could borrow on a home loan, based on your current salary? This assumes two married applicants with a total household income shared between them evenly, no dependents, living in the Sydney metro area, with living expenses based on HEM. Maximum borrowing power is based on a principal and interest repayment over 30 years at an assessment rate of 7.3% p.a.

Tip #2 –Keep Documents That Verify Your Income

A quick and easy way to maximise your borrowing power is to have your paperwork handy. It sounds obvious but lenders only assess you based on your declared income. Unfortunately, many people seek financing based on a word and handshake. This costs them borrowing power, oftentimes hundreds of thousands! If you’re an employee: avoid frustration and get your pay slips in order – you’ll need at least 6 months. If you have a second income, pull that documentation together. If you’re applying for a loan with a partner: ensure they have all their documentation too.

Tip #3 – Pay more tax

If you’re self employed: you may be seeking to minimise your income to lower tax. But again, remember, lenders only assess you on your declared income. As you will see in the table below, an extra $30,000 in declared income can increase your borrowing capacity by almost $200,000! So be sure to talk with your accountant and a qualified mortgage expert before making any decisions about your financial goals. This assumes a single applicant with no dependents, living in the Sydney metro area, with living expenses based on HEM. Maximum borrowing power is based on a principal and interest repayment over 30 years at an assessment rate of 7.3% p.a.

Tip #4 –Slice Up Those Credit Cards

This is another easy way to maximise your borrowing power. With credit cards, lenders don’t just look at your spending patterns – they assess you based on your credit limit. So if you only spend $1,000 per month on your card, but have a limit of $10,000, lenders assess you on the full $10,000. In terms of borrowing power, that’s up to $45,000 less you can borrow! Below is a chart showing how to magnify your borrowing power by losing those credit cards. This graph demonstrates how reducing your credit card limit can increase your borrowing power by as much as $87,000. The scenario in this graph assumes two married applicants with a total household income of $90,000 a year, shared between them evenly, no dependents, living in the Sydney metro area, with living expenses based on HEM. Credit card payments are calculated at 3% of the credit card limit. Maximum borrowing power is based on a principal and interest repayment over 30 years at an assessment rate of 7.3% p.a.

Borrowing Power is NOT a Fixed Number

Here’s a final tip to remember: your borrowing power is NOT a fixed number. As you’ve learnt in this article, it’s possible to magnify your borrowing power – sometimes based on a few extra pay slips! Plus, your borrowing power will vary from lender to lender too. So make sure you work with a qualified expert who knows which lenders to approach based on your unique situation. And, as always, consider loan amounts suited to your circumstances and capacity. Need a home loan?UNO. The new way to get a better deal. Get StartedBook a call in with UNO

5 stars for our service reviews from clients

Book Call Now

UNO home loans

Try Plans, by UNO
Mortgage calculators completely reimagined
Get Started
Considering a purchase or refinance?

Try Plans by UNO

Mortgage calculators completely reimagined
Get Started
☎️ 🚫 No cold call promise

Related Articles

TESTIMONIALS

What our customers are saying

John Carlo Penaflor
June 24, 2025
5 stars for our service reviews from clients
Amazing service from Scott. Efficient, clear and fast. Got my homeloan refinanced in record time.
Read more
Rebekah Tolmachoff
June 24, 2025
5 stars for our service reviews from clients
We had a fantastic experience working with Paul at Uno. From start to finish, he was professional, attentive, and genuinely cared about us and our situation. He kept in touch throughout the entire process, always keeping us informed and making everything feel simple and stress-free. Nothing was ever too much trouble, and his support made a big difference. Highly recommend Paul to anyone looking for a reliable and caring broker!
Read more
Sally MacKenzie
June 10, 2025
5 stars for our service reviews from clients
We chose Uno Home Loans from their impressive web site knowing we were going to find it hard, on many fronts, to qualify for a home loan. We were incredibly fortunate to be assigned Mike Parsons as right from the get-go, despite the complexities, he hit the ground running for us. He was incredibly knowledgeable, with years of experience but what was immediately apparent and impressive was that he was totally invested in getting us over the line, doing absolutely everything possible, including working around the clock. Despite it being a relatively small loan in the order of things, Mike never missed a beat, getting docs ready, following up and answering every request from the proposed funder immediately. He kept us informed on progress the minute anything happened, and again if anything needed to be done, he was right on it. In short, we highly recommend Uno, and Mike, knowing what a remarkable job he did, over many weeks, to get us our loan. He got us a great deal, with far better rates than we expected, so we couldn't be happier. In fact, without doubt, you'd be hard pressed to find a more personable, sharp, hard working, dedicated professional who clearly prides himself on getting his customers standout results.
Read more
Dylan Aubrey
May 31, 2025
5 stars for our service reviews from clients
Jesse did a great job with helping me secure my loan, will be using him again in the future
Read more
Tom Deal
May 30, 2025
5 stars for our service reviews from clients
This is the second time I’ve worked with Mike Parsons, and I wouldn’t go anywhere else for mortgage advice. He’s extremely knowledgeable, responsive, and always happy to help. Mike takes a consultative approach, presenting clear options and making the whole process stress-free. Friendly, professional, and genuinely invested in getting the best outcome. Highly recommend and will definitely use him again!
Read more
ShelleyGawith Functional Nutrition
May 27, 2025
5 stars for our service reviews from clients
Paul was amazing to work with. He went out of his way to help us with every last question. He sorted everything out for us, was a wealth of knowledge in terms of who else to use to support us in the buying process. He made moving from New Zealand so easy. He explained everything to us in an easy to understand way. He really worked for us!!! Plus he's such a lovely funny guy, super approachable. Super responsive, has a great team. Totally took care of us in the whole process. I can't wait to use Paul again and would recommend him to every kiwi moving over and all our aussie friends :)
Read more
Matt Carter
May 21, 2025
5 stars for our service reviews from clients
Paul from Uno has been amazing. Made it so easy! Highly recommend and made the finance process much more enjoyable experience for us.
Read more
Timothy Semsarian
May 17, 2025
5 stars for our service reviews from clients
UNO went above and beyond to help my wife and I with our home loan and settlement. Couldn’t recommend them enough - Jake Wood was an absolute legend! Kept us informed during the whole process and was very thorough with his work, even with a very tight timeframe. Thank you again for all your help, and looking forward to continue using your services!
Read more
Patti Jo Mogensen
May 16, 2025
5 stars for our service reviews from clients
100% Rockstar. We found Paul and Uno Home Loans from recommendations from people who had used his services. We know understand why he comes so highly recommended. We definitely put Paul and his team under pressure due to an oversight our end which meant that he had to don his superman cape and work miracles for us. We didn't appreciate the very very short window we created for ourselves (think less than two weeks for settlement). Paul was able to wave his magic wand, come up with multiple solutions to our situation and make it all happen seamlessly. It goes without saying then, without reservation that we recommend Paul and his team as our trusted mortgage advisor! Thanks again Paul. *****The limoncello is on route we promise :)
Read more
Lani Wards
May 13, 2025
5 stars for our service reviews from clients
Paul Davey worked very hard to get us the mortgage we required for our investment property. He is knowledgeable and approachable. Thanks Paul!
Read more
Michael Badham
May 13, 2025
5 stars for our service reviews from clients
Our entire process with Uno went very well. We had a unique set of requirements for our loan and our super friendly broker Mike Parsons managed to secure us the perfect outcome. Mike also worked above and beyond our expectations to make sure the whole process of completing the documentation of switching banks went smoothly.
Read more
Vanessa Koster
May 13, 2025
5 stars for our service reviews from clients
The service recieved from Paul was fantastic. He made the whole process stress free & easy. We started the process from NZ & Paul had everything ready for approval as soon as we landed in Aus. I would highly recommend Paul if you require a mortgage. You won't be dissapointed.
Read more