How a Mortgage Broker Can Increase Your Borrowing Power

If you’re looking to buy a home, chances are you’ve already typed something like “how much can I borrow?” into Google.

It’s a fair question — and one that frustrates a lot of buyers.

What most people don’t realise is that borrowing power isn’t a fixed number. Two buyers with the same income can get very different results, simply based on which lender they go to and how the loan is structured.

That’s where a good mortgage broker actually makes a difference.

What Does “Borrowing Power” Really Mean?

Borrowing power is the maximum amount a lender is willing to loan you based on things like:

• Your income (salary, overtime, bonuses, business income)

• Existing debts (credit cards, HECS/HELP, personal loans)

• Your living expenses

• Interest rates and servicing buffers

• The lender’s own credit policy

The important part?

👉 Every lender calculates this differently.

How a Mortgage Broker Can Increase Your Borrowing Power

1. You’re Not Locked Into One Bank

If you walk into a bank branch, you’re assessed under one policy.

A mortgage broker compares your position across multiple lenders, including major banks, second-tier lenders and specialists.

Some lenders are conservative. Others are far more flexible.

Same buyer. Different lender. Completely different borrowing result.

2. Your Income Is Assessed Properly

Not all income is treated equally by banks.

A broker knows which lenders:

• Accept 100% of overtime or bonuses

• Are flexible with casual or part-time income

• Are stronger for self-employed borrowers

• Shade rental income less aggressively

This is where many buyers lose borrowing power without realising it.

3. Small Debts Don’t Quietly Kill Your Capacity

Things like credit cards and HECS often reduce borrowing power far more than people expect.

A broker can help by:

• Identifying unused or unnecessary credit limits

• Explaining which lenders assess HECS more favourably

• Restructuring or consolidating debts where appropriate

In some cases, removing a small credit card limit can increase borrowing power by tens of thousands of dollars.

4. The Loan Is Structured With Your Future in Mind

Borrowing power isn’t just about today.

A broker looks at how the loan is set up so it doesn’t limit you later — whether that’s upgrading, starting a family, or investing.

Things like offsets, loan splits and repayment types all matter more than most buyers realise.

5. You Avoid Costly Declines

Policies change constantly.

A broker stays across which lenders are tightening, which are flexible, and which ones are best suited to your situation right now.

Avoiding a declined application protects your credit file — and your future borrowing power.

Why This Matters for Home Buyers

For many buyers, the difference isn’t small.

It can be the difference between:

• Buying now or waiting another year

• Affording the home you actually want

• Keeping a cash buffer instead of stretching yourself

And in most cases, there’s no direct cost to you — brokers are paid by the lender.

Final Thought

Borrowing power isn’t just about your salary.

It’s about lender choice, strategy, and structure.

That’s why speaking to a mortgage broker early — before you start house hunting — can put you in a much stronger position.

Written for Australian home buyers who want clear, practical advice — without the jargon.