Home Company Blog
How to maximise borrowing capacity
By: Annoymous
January 17, 2022

Here’s a couple of tips to help you and your buyers borrow more $$$ to meet current market conditions:

Know your position

Before planning your next move, we need to know your starting position. Getting an accurate picture of your income, expenses, assets, and liabilities is crucial at this stage. It’s the reason we ask for your documentation! Once we know what your situation is, we can then start planning the way forward, and provide advice on what may need to change for a successful loan application.

Come up with a plan

One question buyers often have is how much deposit they need to secure a loan, and whether they should pay off other loans with their savings first, in order to improve their borrowing capacity. Whilst personal loans and credit cards are often deemed to consume a lot more of someone’s monthly income, leaving less for a home loan – if their monthly cash flows are consistently high, sometimes the buyer may be better advised to keep the personal debt and retain their savings to maximise their deposit. Alternatively, if they have a significant deposit, it may be best to clear a lot of personal debt in order to improve their cash flow. The best advice is to not take any steps until they’ve spoken to a Pivotal Broker, who can assist them to plan the best actions to take, all aligned to their particular circumstances. 

Pick the right lender

With so many options of lenders to choose from, which lender is right for you or your customers? Just because Mum and Dad bank with Westpac, that doesn’t mean that they

will be suitable for you! Every lender has their own set of guidelines and policies that they need to adhere to, and you will fall inside or outside of those boxes that need to be ticked. Using a Pivotal broker will mean that we will understand your exact situation, and put you in contact with the most suitable lenders. With borrowing money and affordability becoming harder, each bank will also have a substantially different amount of money that it would be prepared to lend to you. I will also consider this when looking for the most suitable lender for you, ensuring that you can borrow what you need to be able to make your next purchase!

Reach out to myself or a Pivotal broker with any questions you have on navigating the finance world!!

Matthew Andrews

General Manager

Pivotal Financial

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