Online calculators give you a guess. Lenders each give you a different answer — sometimes $150,000 apart for the same person. Here's what actually drives your number.
Ask five lenders how much you can borrow and you’ll get five different answers. Each bank applies its own living-expense benchmarks, treats overtime, bonuses and rental income differently, and stress-tests your repayments at a different buffer. That’s why the difference between your best and worst borrowing-power result can be six figures.
What lenders actually assess
Four things drive the number: your income and how stable it is, your regular expenses, your existing debts and their limits, and the deposit you bring. Two households on identical salaries can qualify for very different loans based on credit card limits alone — even cards you never use.
Quick wins that lift your number
Cancelling unused credit cards or reducing limits, clearing small buy-now-pay-later balances, and tidying discretionary spending in the three months before applying all make a measurable difference. HECS/HELP debt matters too — sometimes clearing a small remaining balance unlocks disproportionately more borrowing power.
Why the right lender matters more than the right rate
If you’re self-employed, rely on overtime or allowances, or earn rental income, lender policy differences get even bigger. Part of our job at Tudor Finance is knowing which of our 25+ lenders treats your income type most generously — before you apply, so there’s no failed application on your credit file.
Borrowing power vs comfortable repayments
The bank’s maximum is not a recommendation. We always model what repayments look like at higher rates and against your real lifestyle, so the loan fits the life you want in the eastern suburbs — not the other way around.
Get an accurate borrowing-power figure in one free conversation — call Tudor Finance in Nunawading on (03) 9894 7135.
This article is general information only and doesn’t consider your personal circumstances. Tudor Finance Pty Ltd, Australian Credit Licence 393142.
