Aspiring homeowners could face another setback if a forecast 0.25% rate rise is passed on, with borrowing power estimated to shrink by up to $25,000 for couples on average salaries.Compare the Market analysis shows that for a Western Australia couple, both on the average annual income of $109,600, a 0.25% rate rise could reduce their borrowing capacity from $1,164,000 to $1,139,000 – that’s a $25,000 difference.It’s a similar story for couples from the Australian Capital Territory and Northern Territory, who would see their borrowing power plummet by $24,000.Meanwhile Victoria and Queensland couples could experience a $21,000 drop in their borrowing capacity.Borrowing power if a 0.25% rate rise were to occur6.25% variable rate6.5% variable rateDifferenceNSW 2000$1,017,000.00$995,000.00$22,000.00VIC 3000$985,000.00$964,000.00$21,000.00QLD 4000$990,000.00$969,000.00$21,000.00SA 5000$887,000.00$868,000.00$19,000.00WA 6000$1,164,000.00$1,139,000.00$25,000.00NT 0800$1,108,000.00$1,084,000.00$24,000.00TAS 7000$862,000.00$844,000.00$18,000.00ACT 2601$1,108,000.00$1,084,000.00$24,000.00Calculations are based on a couple with 2 dependents, using average income figures based onABS average weekly earningsdata by state. Expenses have been calculated using the Household Expenditure Measure (HEM) for the postcode of the capital city in that state. e.g. Postcode 2000 has been used for NSW calculations, postcode 4000 for QLD calculations, etc.But whether a further rate rise would hamper or help families trying to get a foothold in the market remains to be seen, according to Compare the Market’s Economic Director David Koch, who says the impact could have a cooling effect on the market, which may cause price growth to taper.“Demand for property remains strong, so while values aren’t likely to nosedive, a rate rise could see some pressure on budgets that gets reflected in sale prices,” Mr Koch said.“It has been a tough year for people trying to buy property but, if you have your deposit and pre-approval sorted and you are confident you can meet higher repayments, then this might be your window of opportunity.“But if your borrowing power is lowered you might need to consider looking at so-called ‘bridesmaid suburbs’ that are a little bit cheaper but close to where you want to live.”Mr Koch said lenders had been much more cautious to account for the risk of recession and higher rates that could impact long-term serviceability.“The bank will stress test your finances to make sure you can survive a rate rise of up to 3%, but it’s worth having a look at that the numbers yourself,” Mr Koch said.“Unfortunately, our inflation problem is stickier than chewing gum in hair, and it could more than a bit more pain to remove it.“Notable economist Warren Hogan has predicted three cash rate hikes this year – so if that occurs you need to make sure you can still service your loan.”But it’s not all bad news for borrowers, Mr Koch said there were ways people could improve their borrowing power.Kochie’s tips for boosting borrowing powerReduce your credit card limits or get rid of itLenders use your entire credit card limit, rather than just the balance, as part of their serviceability calculations. Therefore, reducing your limit or closing your credit card may help boost your borrowing power.According to a Compare the Market analysis, a $10,000 credit card limit held by someone earning $100,000 wouldreduce their borrowing capacityfrom $552,000 to $505,000.00 – a difference of $47,000.Know your credit scoreWebsites like Compare the Market providefree credit scorechecks to help you understand how strong your borrowing position is. Lenders use your credit score and credit history to calculate risk when assessing your application. Improving your credit score is one way to improve your chances of being approved.Pay off any debtsBanks must consider all financial obligations when calculating your ability to repay debt including credit cards, car loans or personal loans. If you work to reduce or eliminate your debts such as these, you may be able to increase your borrowing capacity.Although Higher Education Loan Programs (HELP) can’t accrue interest like credit cards can – it can be brought in line with inflation. For example, in July this year, millions of Australian university students or people who are still paying off that HELP debt will be slapped with a cruel 4.7% increase in the amount they owe.If you have the ability to pay off your HELP debt, then you might consider doing this, as it may boost your borrowing power.Consider a joint purchaseYou could team up with a family member, partner or friend if your borrowing capacity isn’t high enough and you’re struggling to meet the lender’s income requirements.Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
Compare the Market analysis shows that for a Western Australia couple, both on the average annual income of $109,600, a 0.25% rate rise could reduce their borrowing capacity from $1,164,000 to $1,139,000 – that’s a $25,000 difference.It’s a similar story for couples from the Australian Capital Territory and Northern Territory, who would see their borrowing power plummet by $24,000.Meanwhile Victoria and Queensland couples could experience a $21,000 drop in their borrowing capacity.Borrowing power if a 0.25% rate rise were to occur6.25% variable rate6.5% variable rateDifferenceNSW 2000$1,017,000.00$995,000.00$22,000.00VIC 3000$985,000.00$964,000.00$21,000.00QLD 4000$990,000.00$969,000.00$21,000.00SA 5000$887,000.00$868,000.00$19,000.00WA 6000$1,164,000.00$1,139,000.00$25,000.00NT 0800$1,108,000.00$1,084,000.00$24,000.00TAS 7000$862,000.00$844,000.00$18,000.00ACT 2601$1,108,000.00$1,084,000.00$24,000.00Calculations are based on a couple with 2 dependents, using average income figures based onABS average weekly earningsdata by state. Expenses have been calculated using the Household Expenditure Measure (HEM) for the postcode of the capital city in that state. e.g. Postcode 2000 has been used for NSW calculations, postcode 4000 for QLD calculations, etc.But whether a further rate rise would hamper or help families trying to get a foothold in the market remains to be seen, according to Compare the Market’s Economic Director David Koch, who says the impact could have a cooling effect on the market, which may cause price growth to taper.“Demand for property remains strong, so while values aren’t likely to nosedive, a rate rise could see some pressure on budgets that gets reflected in sale prices,” Mr Koch said.“It has been a tough year for people trying to buy property but, if you have your deposit and pre-approval sorted and you are confident you can meet higher repayments, then this might be your window of opportunity.“But if your borrowing power is lowered you might need to consider looking at so-called ‘bridesmaid suburbs’ that are a little bit cheaper but close to where you want to live.”Mr Koch said lenders had been much more cautious to account for the risk of recession and higher rates that could impact long-term serviceability.“The bank will stress test your finances to make sure you can survive a rate rise of up to 3%, but it’s worth having a look at that the numbers yourself,” Mr Koch said.“Unfortunately, our inflation problem is stickier than chewing gum in hair, and it could more than a bit more pain to remove it.“Notable economist Warren Hogan has predicted three cash rate hikes this year – so if that occurs you need to make sure you can still service your loan.”But it’s not all bad news for borrowers, Mr Koch said there were ways people could improve their borrowing power.Kochie’s tips for boosting borrowing powerReduce your credit card limits or get rid of itLenders use your entire credit card limit, rather than just the balance, as part of their serviceability calculations. Therefore, reducing your limit or closing your credit card may help boost your borrowing power.According to a Compare the Market analysis, a $10,000 credit card limit held by someone earning $100,000 wouldreduce their borrowing capacityfrom $552,000 to $505,000.00 – a difference of $47,000.Know your credit scoreWebsites like Compare the Market providefree credit scorechecks to help you understand how strong your borrowing position is. Lenders use your credit score and credit history to calculate risk when assessing your application. Improving your credit score is one way to improve your chances of being approved.Pay off any debtsBanks must consider all financial obligations when calculating your ability to repay debt including credit cards, car loans or personal loans. If you work to reduce or eliminate your debts such as these, you may be able to increase your borrowing capacity.Although Higher Education Loan Programs (HELP) can’t accrue interest like credit cards can – it can be brought in line with inflation. For example, in July this year, millions of Australian university students or people who are still paying off that HELP debt will be slapped with a cruel 4.7% increase in the amount they owe.If you have the ability to pay off your HELP debt, then you might consider doing this, as it may boost your borrowing power.Consider a joint purchaseYou could team up with a family member, partner or friend if your borrowing capacity isn’t high enough and you’re struggling to meet the lender’s income requirements.Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
It’s a similar story for couples from the Australian Capital Territory and Northern Territory, who would see their borrowing power plummet by $24,000.Meanwhile Victoria and Queensland couples could experience a $21,000 drop in their borrowing capacity.Borrowing power if a 0.25% rate rise were to occur6.25% variable rate6.5% variable rateDifferenceNSW 2000$1,017,000.00$995,000.00$22,000.00VIC 3000$985,000.00$964,000.00$21,000.00QLD 4000$990,000.00$969,000.00$21,000.00SA 5000$887,000.00$868,000.00$19,000.00WA 6000$1,164,000.00$1,139,000.00$25,000.00NT 0800$1,108,000.00$1,084,000.00$24,000.00TAS 7000$862,000.00$844,000.00$18,000.00ACT 2601$1,108,000.00$1,084,000.00$24,000.00Calculations are based on a couple with 2 dependents, using average income figures based onABS average weekly earningsdata by state. Expenses have been calculated using the Household Expenditure Measure (HEM) for the postcode of the capital city in that state. e.g. Postcode 2000 has been used for NSW calculations, postcode 4000 for QLD calculations, etc.But whether a further rate rise would hamper or help families trying to get a foothold in the market remains to be seen, according to Compare the Market’s Economic Director David Koch, who says the impact could have a cooling effect on the market, which may cause price growth to taper.“Demand for property remains strong, so while values aren’t likely to nosedive, a rate rise could see some pressure on budgets that gets reflected in sale prices,” Mr Koch said.“It has been a tough year for people trying to buy property but, if you have your deposit and pre-approval sorted and you are confident you can meet higher repayments, then this might be your window of opportunity.“But if your borrowing power is lowered you might need to consider looking at so-called ‘bridesmaid suburbs’ that are a little bit cheaper but close to where you want to live.”Mr Koch said lenders had been much more cautious to account for the risk of recession and higher rates that could impact long-term serviceability.“The bank will stress test your finances to make sure you can survive a rate rise of up to 3%, but it’s worth having a look at that the numbers yourself,” Mr Koch said.“Unfortunately, our inflation problem is stickier than chewing gum in hair, and it could more than a bit more pain to remove it.“Notable economist Warren Hogan has predicted three cash rate hikes this year – so if that occurs you need to make sure you can still service your loan.”But it’s not all bad news for borrowers, Mr Koch said there were ways people could improve their borrowing power.Kochie’s tips for boosting borrowing powerReduce your credit card limits or get rid of itLenders use your entire credit card limit, rather than just the balance, as part of their serviceability calculations. Therefore, reducing your limit or closing your credit card may help boost your borrowing power.According to a Compare the Market analysis, a $10,000 credit card limit held by someone earning $100,000 wouldreduce their borrowing capacityfrom $552,000 to $505,000.00 – a difference of $47,000.Know your credit scoreWebsites like Compare the Market providefree credit scorechecks to help you understand how strong your borrowing position is. Lenders use your credit score and credit history to calculate risk when assessing your application. Improving your credit score is one way to improve your chances of being approved.Pay off any debtsBanks must consider all financial obligations when calculating your ability to repay debt including credit cards, car loans or personal loans. If you work to reduce or eliminate your debts such as these, you may be able to increase your borrowing capacity.Although Higher Education Loan Programs (HELP) can’t accrue interest like credit cards can – it can be brought in line with inflation. For example, in July this year, millions of Australian university students or people who are still paying off that HELP debt will be slapped with a cruel 4.7% increase in the amount they owe.If you have the ability to pay off your HELP debt, then you might consider doing this, as it may boost your borrowing power.Consider a joint purchaseYou could team up with a family member, partner or friend if your borrowing capacity isn’t high enough and you’re struggling to meet the lender’s income requirements.Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
Meanwhile Victoria and Queensland couples could experience a $21,000 drop in their borrowing capacity.Borrowing power if a 0.25% rate rise were to occur6.25% variable rate6.5% variable rateDifferenceNSW 2000$1,017,000.00$995,000.00$22,000.00VIC 3000$985,000.00$964,000.00$21,000.00QLD 4000$990,000.00$969,000.00$21,000.00SA 5000$887,000.00$868,000.00$19,000.00WA 6000$1,164,000.00$1,139,000.00$25,000.00NT 0800$1,108,000.00$1,084,000.00$24,000.00TAS 7000$862,000.00$844,000.00$18,000.00ACT 2601$1,108,000.00$1,084,000.00$24,000.00Calculations are based on a couple with 2 dependents, using average income figures based onABS average weekly earningsdata by state. Expenses have been calculated using the Household Expenditure Measure (HEM) for the postcode of the capital city in that state. e.g. Postcode 2000 has been used for NSW calculations, postcode 4000 for QLD calculations, etc.But whether a further rate rise would hamper or help families trying to get a foothold in the market remains to be seen, according to Compare the Market’s Economic Director David Koch, who says the impact could have a cooling effect on the market, which may cause price growth to taper.“Demand for property remains strong, so while values aren’t likely to nosedive, a rate rise could see some pressure on budgets that gets reflected in sale prices,” Mr Koch said.“It has been a tough year for people trying to buy property but, if you have your deposit and pre-approval sorted and you are confident you can meet higher repayments, then this might be your window of opportunity.“But if your borrowing power is lowered you might need to consider looking at so-called ‘bridesmaid suburbs’ that are a little bit cheaper but close to where you want to live.”Mr Koch said lenders had been much more cautious to account for the risk of recession and higher rates that could impact long-term serviceability.“The bank will stress test your finances to make sure you can survive a rate rise of up to 3%, but it’s worth having a look at that the numbers yourself,” Mr Koch said.“Unfortunately, our inflation problem is stickier than chewing gum in hair, and it could more than a bit more pain to remove it.“Notable economist Warren Hogan has predicted three cash rate hikes this year – so if that occurs you need to make sure you can still service your loan.”But it’s not all bad news for borrowers, Mr Koch said there were ways people could improve their borrowing power.Kochie’s tips for boosting borrowing powerReduce your credit card limits or get rid of itLenders use your entire credit card limit, rather than just the balance, as part of their serviceability calculations. Therefore, reducing your limit or closing your credit card may help boost your borrowing power.According to a Compare the Market analysis, a $10,000 credit card limit held by someone earning $100,000 wouldreduce their borrowing capacityfrom $552,000 to $505,000.00 – a difference of $47,000.Know your credit scoreWebsites like Compare the Market providefree credit scorechecks to help you understand how strong your borrowing position is. Lenders use your credit score and credit history to calculate risk when assessing your application. Improving your credit score is one way to improve your chances of being approved.Pay off any debtsBanks must consider all financial obligations when calculating your ability to repay debt including credit cards, car loans or personal loans. If you work to reduce or eliminate your debts such as these, you may be able to increase your borrowing capacity.Although Higher Education Loan Programs (HELP) can’t accrue interest like credit cards can – it can be brought in line with inflation. For example, in July this year, millions of Australian university students or people who are still paying off that HELP debt will be slapped with a cruel 4.7% increase in the amount they owe.If you have the ability to pay off your HELP debt, then you might consider doing this, as it may boost your borrowing power.Consider a joint purchaseYou could team up with a family member, partner or friend if your borrowing capacity isn’t high enough and you’re struggling to meet the lender’s income requirements.Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
But whether a further rate rise would hamper or help families trying to get a foothold in the market remains to be seen, according to Compare the Market’s Economic Director David Koch, who says the impact could have a cooling effect on the market, which may cause price growth to taper.“Demand for property remains strong, so while values aren’t likely to nosedive, a rate rise could see some pressure on budgets that gets reflected in sale prices,” Mr Koch said.“It has been a tough year for people trying to buy property but, if you have your deposit and pre-approval sorted and you are confident you can meet higher repayments, then this might be your window of opportunity.“But if your borrowing power is lowered you might need to consider looking at so-called ‘bridesmaid suburbs’ that are a little bit cheaper but close to where you want to live.”Mr Koch said lenders had been much more cautious to account for the risk of recession and higher rates that could impact long-term serviceability.“The bank will stress test your finances to make sure you can survive a rate rise of up to 3%, but it’s worth having a look at that the numbers yourself,” Mr Koch said.“Unfortunately, our inflation problem is stickier than chewing gum in hair, and it could more than a bit more pain to remove it.“Notable economist Warren Hogan has predicted three cash rate hikes this year – so if that occurs you need to make sure you can still service your loan.”But it’s not all bad news for borrowers, Mr Koch said there were ways people could improve their borrowing power.Kochie’s tips for boosting borrowing powerReduce your credit card limits or get rid of itLenders use your entire credit card limit, rather than just the balance, as part of their serviceability calculations. Therefore, reducing your limit or closing your credit card may help boost your borrowing power.According to a Compare the Market analysis, a $10,000 credit card limit held by someone earning $100,000 wouldreduce their borrowing capacityfrom $552,000 to $505,000.00 – a difference of $47,000.Know your credit scoreWebsites like Compare the Market providefree credit scorechecks to help you understand how strong your borrowing position is. Lenders use your credit score and credit history to calculate risk when assessing your application. Improving your credit score is one way to improve your chances of being approved.Pay off any debtsBanks must consider all financial obligations when calculating your ability to repay debt including credit cards, car loans or personal loans. If you work to reduce or eliminate your debts such as these, you may be able to increase your borrowing capacity.Although Higher Education Loan Programs (HELP) can’t accrue interest like credit cards can – it can be brought in line with inflation. For example, in July this year, millions of Australian university students or people who are still paying off that HELP debt will be slapped with a cruel 4.7% increase in the amount they owe.If you have the ability to pay off your HELP debt, then you might consider doing this, as it may boost your borrowing power.Consider a joint purchaseYou could team up with a family member, partner or friend if your borrowing capacity isn’t high enough and you’re struggling to meet the lender’s income requirements.Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
“Demand for property remains strong, so while values aren’t likely to nosedive, a rate rise could see some pressure on budgets that gets reflected in sale prices,” Mr Koch said.“It has been a tough year for people trying to buy property but, if you have your deposit and pre-approval sorted and you are confident you can meet higher repayments, then this might be your window of opportunity.“But if your borrowing power is lowered you might need to consider looking at so-called ‘bridesmaid suburbs’ that are a little bit cheaper but close to where you want to live.”Mr Koch said lenders had been much more cautious to account for the risk of recession and higher rates that could impact long-term serviceability.“The bank will stress test your finances to make sure you can survive a rate rise of up to 3%, but it’s worth having a look at that the numbers yourself,” Mr Koch said.“Unfortunately, our inflation problem is stickier than chewing gum in hair, and it could more than a bit more pain to remove it.“Notable economist Warren Hogan has predicted three cash rate hikes this year – so if that occurs you need to make sure you can still service your loan.”But it’s not all bad news for borrowers, Mr Koch said there were ways people could improve their borrowing power.Kochie’s tips for boosting borrowing powerReduce your credit card limits or get rid of itLenders use your entire credit card limit, rather than just the balance, as part of their serviceability calculations. Therefore, reducing your limit or closing your credit card may help boost your borrowing power.According to a Compare the Market analysis, a $10,000 credit card limit held by someone earning $100,000 wouldreduce their borrowing capacityfrom $552,000 to $505,000.00 – a difference of $47,000.Know your credit scoreWebsites like Compare the Market providefree credit scorechecks to help you understand how strong your borrowing position is. Lenders use your credit score and credit history to calculate risk when assessing your application. Improving your credit score is one way to improve your chances of being approved.Pay off any debtsBanks must consider all financial obligations when calculating your ability to repay debt including credit cards, car loans or personal loans. If you work to reduce or eliminate your debts such as these, you may be able to increase your borrowing capacity.Although Higher Education Loan Programs (HELP) can’t accrue interest like credit cards can – it can be brought in line with inflation. For example, in July this year, millions of Australian university students or people who are still paying off that HELP debt will be slapped with a cruel 4.7% increase in the amount they owe.If you have the ability to pay off your HELP debt, then you might consider doing this, as it may boost your borrowing power.Consider a joint purchaseYou could team up with a family member, partner or friend if your borrowing capacity isn’t high enough and you’re struggling to meet the lender’s income requirements.Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
“It has been a tough year for people trying to buy property but, if you have your deposit and pre-approval sorted and you are confident you can meet higher repayments, then this might be your window of opportunity.“But if your borrowing power is lowered you might need to consider looking at so-called ‘bridesmaid suburbs’ that are a little bit cheaper but close to where you want to live.”Mr Koch said lenders had been much more cautious to account for the risk of recession and higher rates that could impact long-term serviceability.“The bank will stress test your finances to make sure you can survive a rate rise of up to 3%, but it’s worth having a look at that the numbers yourself,” Mr Koch said.“Unfortunately, our inflation problem is stickier than chewing gum in hair, and it could more than a bit more pain to remove it.“Notable economist Warren Hogan has predicted three cash rate hikes this year – so if that occurs you need to make sure you can still service your loan.”But it’s not all bad news for borrowers, Mr Koch said there were ways people could improve their borrowing power.Kochie’s tips for boosting borrowing powerReduce your credit card limits or get rid of itLenders use your entire credit card limit, rather than just the balance, as part of their serviceability calculations. Therefore, reducing your limit or closing your credit card may help boost your borrowing power.According to a Compare the Market analysis, a $10,000 credit card limit held by someone earning $100,000 wouldreduce their borrowing capacityfrom $552,000 to $505,000.00 – a difference of $47,000.Know your credit scoreWebsites like Compare the Market providefree credit scorechecks to help you understand how strong your borrowing position is. Lenders use your credit score and credit history to calculate risk when assessing your application. Improving your credit score is one way to improve your chances of being approved.Pay off any debtsBanks must consider all financial obligations when calculating your ability to repay debt including credit cards, car loans or personal loans. If you work to reduce or eliminate your debts such as these, you may be able to increase your borrowing capacity.Although Higher Education Loan Programs (HELP) can’t accrue interest like credit cards can – it can be brought in line with inflation. For example, in July this year, millions of Australian university students or people who are still paying off that HELP debt will be slapped with a cruel 4.7% increase in the amount they owe.If you have the ability to pay off your HELP debt, then you might consider doing this, as it may boost your borrowing power.Consider a joint purchaseYou could team up with a family member, partner or friend if your borrowing capacity isn’t high enough and you’re struggling to meet the lender’s income requirements.Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
“But if your borrowing power is lowered you might need to consider looking at so-called ‘bridesmaid suburbs’ that are a little bit cheaper but close to where you want to live.”Mr Koch said lenders had been much more cautious to account for the risk of recession and higher rates that could impact long-term serviceability.“The bank will stress test your finances to make sure you can survive a rate rise of up to 3%, but it’s worth having a look at that the numbers yourself,” Mr Koch said.“Unfortunately, our inflation problem is stickier than chewing gum in hair, and it could more than a bit more pain to remove it.“Notable economist Warren Hogan has predicted three cash rate hikes this year – so if that occurs you need to make sure you can still service your loan.”But it’s not all bad news for borrowers, Mr Koch said there were ways people could improve their borrowing power.Kochie’s tips for boosting borrowing powerReduce your credit card limits or get rid of itLenders use your entire credit card limit, rather than just the balance, as part of their serviceability calculations. Therefore, reducing your limit or closing your credit card may help boost your borrowing power.According to a Compare the Market analysis, a $10,000 credit card limit held by someone earning $100,000 wouldreduce their borrowing capacityfrom $552,000 to $505,000.00 – a difference of $47,000.Know your credit scoreWebsites like Compare the Market providefree credit scorechecks to help you understand how strong your borrowing position is. Lenders use your credit score and credit history to calculate risk when assessing your application. Improving your credit score is one way to improve your chances of being approved.Pay off any debtsBanks must consider all financial obligations when calculating your ability to repay debt including credit cards, car loans or personal loans. If you work to reduce or eliminate your debts such as these, you may be able to increase your borrowing capacity.Although Higher Education Loan Programs (HELP) can’t accrue interest like credit cards can – it can be brought in line with inflation. For example, in July this year, millions of Australian university students or people who are still paying off that HELP debt will be slapped with a cruel 4.7% increase in the amount they owe.If you have the ability to pay off your HELP debt, then you might consider doing this, as it may boost your borrowing power.Consider a joint purchaseYou could team up with a family member, partner or friend if your borrowing capacity isn’t high enough and you’re struggling to meet the lender’s income requirements.Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
Mr Koch said lenders had been much more cautious to account for the risk of recession and higher rates that could impact long-term serviceability.“The bank will stress test your finances to make sure you can survive a rate rise of up to 3%, but it’s worth having a look at that the numbers yourself,” Mr Koch said.“Unfortunately, our inflation problem is stickier than chewing gum in hair, and it could more than a bit more pain to remove it.“Notable economist Warren Hogan has predicted three cash rate hikes this year – so if that occurs you need to make sure you can still service your loan.”But it’s not all bad news for borrowers, Mr Koch said there were ways people could improve their borrowing power.Kochie’s tips for boosting borrowing powerReduce your credit card limits or get rid of itLenders use your entire credit card limit, rather than just the balance, as part of their serviceability calculations. Therefore, reducing your limit or closing your credit card may help boost your borrowing power.According to a Compare the Market analysis, a $10,000 credit card limit held by someone earning $100,000 wouldreduce their borrowing capacityfrom $552,000 to $505,000.00 – a difference of $47,000.Know your credit scoreWebsites like Compare the Market providefree credit scorechecks to help you understand how strong your borrowing position is. Lenders use your credit score and credit history to calculate risk when assessing your application. Improving your credit score is one way to improve your chances of being approved.Pay off any debtsBanks must consider all financial obligations when calculating your ability to repay debt including credit cards, car loans or personal loans. If you work to reduce or eliminate your debts such as these, you may be able to increase your borrowing capacity.Although Higher Education Loan Programs (HELP) can’t accrue interest like credit cards can – it can be brought in line with inflation. For example, in July this year, millions of Australian university students or people who are still paying off that HELP debt will be slapped with a cruel 4.7% increase in the amount they owe.If you have the ability to pay off your HELP debt, then you might consider doing this, as it may boost your borrowing power.Consider a joint purchaseYou could team up with a family member, partner or friend if your borrowing capacity isn’t high enough and you’re struggling to meet the lender’s income requirements.Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
“The bank will stress test your finances to make sure you can survive a rate rise of up to 3%, but it’s worth having a look at that the numbers yourself,” Mr Koch said.“Unfortunately, our inflation problem is stickier than chewing gum in hair, and it could more than a bit more pain to remove it.“Notable economist Warren Hogan has predicted three cash rate hikes this year – so if that occurs you need to make sure you can still service your loan.”But it’s not all bad news for borrowers, Mr Koch said there were ways people could improve their borrowing power.Kochie’s tips for boosting borrowing powerReduce your credit card limits or get rid of itLenders use your entire credit card limit, rather than just the balance, as part of their serviceability calculations. Therefore, reducing your limit or closing your credit card may help boost your borrowing power.According to a Compare the Market analysis, a $10,000 credit card limit held by someone earning $100,000 wouldreduce their borrowing capacityfrom $552,000 to $505,000.00 – a difference of $47,000.Know your credit scoreWebsites like Compare the Market providefree credit scorechecks to help you understand how strong your borrowing position is. Lenders use your credit score and credit history to calculate risk when assessing your application. Improving your credit score is one way to improve your chances of being approved.Pay off any debtsBanks must consider all financial obligations when calculating your ability to repay debt including credit cards, car loans or personal loans. If you work to reduce or eliminate your debts such as these, you may be able to increase your borrowing capacity.Although Higher Education Loan Programs (HELP) can’t accrue interest like credit cards can – it can be brought in line with inflation. For example, in July this year, millions of Australian university students or people who are still paying off that HELP debt will be slapped with a cruel 4.7% increase in the amount they owe.If you have the ability to pay off your HELP debt, then you might consider doing this, as it may boost your borrowing power.Consider a joint purchaseYou could team up with a family member, partner or friend if your borrowing capacity isn’t high enough and you’re struggling to meet the lender’s income requirements.Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
“Unfortunately, our inflation problem is stickier than chewing gum in hair, and it could more than a bit more pain to remove it.“Notable economist Warren Hogan has predicted three cash rate hikes this year – so if that occurs you need to make sure you can still service your loan.”But it’s not all bad news for borrowers, Mr Koch said there were ways people could improve their borrowing power.Kochie’s tips for boosting borrowing powerReduce your credit card limits or get rid of itLenders use your entire credit card limit, rather than just the balance, as part of their serviceability calculations. Therefore, reducing your limit or closing your credit card may help boost your borrowing power.According to a Compare the Market analysis, a $10,000 credit card limit held by someone earning $100,000 wouldreduce their borrowing capacityfrom $552,000 to $505,000.00 – a difference of $47,000.Know your credit scoreWebsites like Compare the Market providefree credit scorechecks to help you understand how strong your borrowing position is. Lenders use your credit score and credit history to calculate risk when assessing your application. Improving your credit score is one way to improve your chances of being approved.Pay off any debtsBanks must consider all financial obligations when calculating your ability to repay debt including credit cards, car loans or personal loans. If you work to reduce or eliminate your debts such as these, you may be able to increase your borrowing capacity.Although Higher Education Loan Programs (HELP) can’t accrue interest like credit cards can – it can be brought in line with inflation. For example, in July this year, millions of Australian university students or people who are still paying off that HELP debt will be slapped with a cruel 4.7% increase in the amount they owe.If you have the ability to pay off your HELP debt, then you might consider doing this, as it may boost your borrowing power.Consider a joint purchaseYou could team up with a family member, partner or friend if your borrowing capacity isn’t high enough and you’re struggling to meet the lender’s income requirements.Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
“Notable economist Warren Hogan has predicted three cash rate hikes this year – so if that occurs you need to make sure you can still service your loan.”But it’s not all bad news for borrowers, Mr Koch said there were ways people could improve their borrowing power.Kochie’s tips for boosting borrowing powerReduce your credit card limits or get rid of itLenders use your entire credit card limit, rather than just the balance, as part of their serviceability calculations. Therefore, reducing your limit or closing your credit card may help boost your borrowing power.According to a Compare the Market analysis, a $10,000 credit card limit held by someone earning $100,000 wouldreduce their borrowing capacityfrom $552,000 to $505,000.00 – a difference of $47,000.Know your credit scoreWebsites like Compare the Market providefree credit scorechecks to help you understand how strong your borrowing position is. Lenders use your credit score and credit history to calculate risk when assessing your application. Improving your credit score is one way to improve your chances of being approved.Pay off any debtsBanks must consider all financial obligations when calculating your ability to repay debt including credit cards, car loans or personal loans. If you work to reduce or eliminate your debts such as these, you may be able to increase your borrowing capacity.Although Higher Education Loan Programs (HELP) can’t accrue interest like credit cards can – it can be brought in line with inflation. For example, in July this year, millions of Australian university students or people who are still paying off that HELP debt will be slapped with a cruel 4.7% increase in the amount they owe.If you have the ability to pay off your HELP debt, then you might consider doing this, as it may boost your borrowing power.Consider a joint purchaseYou could team up with a family member, partner or friend if your borrowing capacity isn’t high enough and you’re struggling to meet the lender’s income requirements.Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
But it’s not all bad news for borrowers, Mr Koch said there were ways people could improve their borrowing power.Kochie’s tips for boosting borrowing powerReduce your credit card limits or get rid of itLenders use your entire credit card limit, rather than just the balance, as part of their serviceability calculations. Therefore, reducing your limit or closing your credit card may help boost your borrowing power.According to a Compare the Market analysis, a $10,000 credit card limit held by someone earning $100,000 wouldreduce their borrowing capacityfrom $552,000 to $505,000.00 – a difference of $47,000.Know your credit scoreWebsites like Compare the Market providefree credit scorechecks to help you understand how strong your borrowing position is. Lenders use your credit score and credit history to calculate risk when assessing your application. Improving your credit score is one way to improve your chances of being approved.Pay off any debtsBanks must consider all financial obligations when calculating your ability to repay debt including credit cards, car loans or personal loans. If you work to reduce or eliminate your debts such as these, you may be able to increase your borrowing capacity.Although Higher Education Loan Programs (HELP) can’t accrue interest like credit cards can – it can be brought in line with inflation. For example, in July this year, millions of Australian university students or people who are still paying off that HELP debt will be slapped with a cruel 4.7% increase in the amount they owe.If you have the ability to pay off your HELP debt, then you might consider doing this, as it may boost your borrowing power.Consider a joint purchaseYou could team up with a family member, partner or friend if your borrowing capacity isn’t high enough and you’re struggling to meet the lender’s income requirements.Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
Kochie’s tips for boosting borrowing power
Reduce your credit card limits or get rid of itLenders use your entire credit card limit, rather than just the balance, as part of their serviceability calculations. Therefore, reducing your limit or closing your credit card may help boost your borrowing power.According to a Compare the Market analysis, a $10,000 credit card limit held by someone earning $100,000 wouldreduce their borrowing capacityfrom $552,000 to $505,000.00 – a difference of $47,000.Know your credit scoreWebsites like Compare the Market providefree credit scorechecks to help you understand how strong your borrowing position is. Lenders use your credit score and credit history to calculate risk when assessing your application. Improving your credit score is one way to improve your chances of being approved.Pay off any debtsBanks must consider all financial obligations when calculating your ability to repay debt including credit cards, car loans or personal loans. If you work to reduce or eliminate your debts such as these, you may be able to increase your borrowing capacity.Although Higher Education Loan Programs (HELP) can’t accrue interest like credit cards can – it can be brought in line with inflation. For example, in July this year, millions of Australian university students or people who are still paying off that HELP debt will be slapped with a cruel 4.7% increase in the amount they owe.If you have the ability to pay off your HELP debt, then you might consider doing this, as it may boost your borrowing power.Consider a joint purchaseYou could team up with a family member, partner or friend if your borrowing capacity isn’t high enough and you’re struggling to meet the lender’s income requirements.Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
Lenders use your entire credit card limit, rather than just the balance, as part of their serviceability calculations. Therefore, reducing your limit or closing your credit card may help boost your borrowing power.According to a Compare the Market analysis, a $10,000 credit card limit held by someone earning $100,000 wouldreduce their borrowing capacityfrom $552,000 to $505,000.00 – a difference of $47,000.Know your credit scoreWebsites like Compare the Market providefree credit scorechecks to help you understand how strong your borrowing position is. Lenders use your credit score and credit history to calculate risk when assessing your application. Improving your credit score is one way to improve your chances of being approved.Pay off any debtsBanks must consider all financial obligations when calculating your ability to repay debt including credit cards, car loans or personal loans. If you work to reduce or eliminate your debts such as these, you may be able to increase your borrowing capacity.Although Higher Education Loan Programs (HELP) can’t accrue interest like credit cards can – it can be brought in line with inflation. For example, in July this year, millions of Australian university students or people who are still paying off that HELP debt will be slapped with a cruel 4.7% increase in the amount they owe.If you have the ability to pay off your HELP debt, then you might consider doing this, as it may boost your borrowing power.Consider a joint purchaseYou could team up with a family member, partner or friend if your borrowing capacity isn’t high enough and you’re struggling to meet the lender’s income requirements.Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
According to a Compare the Market analysis, a $10,000 credit card limit held by someone earning $100,000 wouldreduce their borrowing capacityfrom $552,000 to $505,000.00 – a difference of $47,000.Know your credit scoreWebsites like Compare the Market providefree credit scorechecks to help you understand how strong your borrowing position is. Lenders use your credit score and credit history to calculate risk when assessing your application. Improving your credit score is one way to improve your chances of being approved.Pay off any debtsBanks must consider all financial obligations when calculating your ability to repay debt including credit cards, car loans or personal loans. If you work to reduce or eliminate your debts such as these, you may be able to increase your borrowing capacity.Although Higher Education Loan Programs (HELP) can’t accrue interest like credit cards can – it can be brought in line with inflation. For example, in July this year, millions of Australian university students or people who are still paying off that HELP debt will be slapped with a cruel 4.7% increase in the amount they owe.If you have the ability to pay off your HELP debt, then you might consider doing this, as it may boost your borrowing power.Consider a joint purchaseYou could team up with a family member, partner or friend if your borrowing capacity isn’t high enough and you’re struggling to meet the lender’s income requirements.Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
Know your credit scoreWebsites like Compare the Market providefree credit scorechecks to help you understand how strong your borrowing position is. Lenders use your credit score and credit history to calculate risk when assessing your application. Improving your credit score is one way to improve your chances of being approved.Pay off any debtsBanks must consider all financial obligations when calculating your ability to repay debt including credit cards, car loans or personal loans. If you work to reduce or eliminate your debts such as these, you may be able to increase your borrowing capacity.Although Higher Education Loan Programs (HELP) can’t accrue interest like credit cards can – it can be brought in line with inflation. For example, in July this year, millions of Australian university students or people who are still paying off that HELP debt will be slapped with a cruel 4.7% increase in the amount they owe.If you have the ability to pay off your HELP debt, then you might consider doing this, as it may boost your borrowing power.Consider a joint purchaseYou could team up with a family member, partner or friend if your borrowing capacity isn’t high enough and you’re struggling to meet the lender’s income requirements.Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
Websites like Compare the Market providefree credit scorechecks to help you understand how strong your borrowing position is. Lenders use your credit score and credit history to calculate risk when assessing your application. Improving your credit score is one way to improve your chances of being approved.Pay off any debtsBanks must consider all financial obligations when calculating your ability to repay debt including credit cards, car loans or personal loans. If you work to reduce or eliminate your debts such as these, you may be able to increase your borrowing capacity.Although Higher Education Loan Programs (HELP) can’t accrue interest like credit cards can – it can be brought in line with inflation. For example, in July this year, millions of Australian university students or people who are still paying off that HELP debt will be slapped with a cruel 4.7% increase in the amount they owe.If you have the ability to pay off your HELP debt, then you might consider doing this, as it may boost your borrowing power.Consider a joint purchaseYou could team up with a family member, partner or friend if your borrowing capacity isn’t high enough and you’re struggling to meet the lender’s income requirements.Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
Pay off any debtsBanks must consider all financial obligations when calculating your ability to repay debt including credit cards, car loans or personal loans. If you work to reduce or eliminate your debts such as these, you may be able to increase your borrowing capacity.Although Higher Education Loan Programs (HELP) can’t accrue interest like credit cards can – it can be brought in line with inflation. For example, in July this year, millions of Australian university students or people who are still paying off that HELP debt will be slapped with a cruel 4.7% increase in the amount they owe.If you have the ability to pay off your HELP debt, then you might consider doing this, as it may boost your borrowing power.Consider a joint purchaseYou could team up with a family member, partner or friend if your borrowing capacity isn’t high enough and you’re struggling to meet the lender’s income requirements.Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
Banks must consider all financial obligations when calculating your ability to repay debt including credit cards, car loans or personal loans. If you work to reduce or eliminate your debts such as these, you may be able to increase your borrowing capacity.Although Higher Education Loan Programs (HELP) can’t accrue interest like credit cards can – it can be brought in line with inflation. For example, in July this year, millions of Australian university students or people who are still paying off that HELP debt will be slapped with a cruel 4.7% increase in the amount they owe.If you have the ability to pay off your HELP debt, then you might consider doing this, as it may boost your borrowing power.Consider a joint purchaseYou could team up with a family member, partner or friend if your borrowing capacity isn’t high enough and you’re struggling to meet the lender’s income requirements.Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
Although Higher Education Loan Programs (HELP) can’t accrue interest like credit cards can – it can be brought in line with inflation. For example, in July this year, millions of Australian university students or people who are still paying off that HELP debt will be slapped with a cruel 4.7% increase in the amount they owe.If you have the ability to pay off your HELP debt, then you might consider doing this, as it may boost your borrowing power.Consider a joint purchaseYou could team up with a family member, partner or friend if your borrowing capacity isn’t high enough and you’re struggling to meet the lender’s income requirements.Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
If you have the ability to pay off your HELP debt, then you might consider doing this, as it may boost your borrowing power.Consider a joint purchaseYou could team up with a family member, partner or friend if your borrowing capacity isn’t high enough and you’re struggling to meet the lender’s income requirements.Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
Consider a joint purchaseYou could team up with a family member, partner or friend if your borrowing capacity isn’t high enough and you’re struggling to meet the lender’s income requirements.Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
You could team up with a family member, partner or friend if your borrowing capacity isn’t high enough and you’re struggling to meet the lender’s income requirements.Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
Joint purchases have become a popular way for many to break into the property market. Two incomes are usually better than one – so you may find your borrowing power increases with an additional person on the loan.Previous ArticleNext Article
