If you are trying to refinance for a better rate or upgrade your family home this year, you might have hit a frustrating roadblock. Despite having a flawless repayment history and a solid income, the bank is telling you that you don’t qualify for the exact loan size you currently hold.
Welcome to the “Borrowing Capacity Prison”.
Due to the current RBA cash rate and strict APRA assessment buffers (which test your ability to repay a loan at 3% higher than the actual rate), borrowing power has dropped significantly across Australia. But a “no” from a standard bank algorithm doesn’t mean you are out of options.
Here are three actionable strategies to instantly boost your borrowing power in 2026:
- Slash Your Credit Card Limits: Banks don’t look at what you owe on your credit card; they assess you based on your limit. Dropping a $15,000 limit down to $3,000 can add tens of thousands of dollars to your home loan borrowing capacity.
- Consolidate Short-Term Debt: Car loans and personal loans have high monthly commitments that aggressively eat into your servicing capacity. Rolling these into your mortgage (where appropriate) spreads the cost and dramatically reduces your monthly outgoings.
- Restructure Commercial Liabilities: For self-employed individuals, how your business debt is structured heavily impacts your personal borrowing power. Moving equipment finance to specialised commercial lenders can untangle your personal servicing.
The Bottom Line: Navigating assessment buffers requires strategic finance structuring, not just applying to the bank you’ve been with since childhood. You need a customised approach to unlock your equity.
Ready to find out your true borrowing potential?
Don’t let an algorithm dictate your property goals. At SRI Finance, we stress-test your scenario across dozens of lenders to find the policy that works in your favour.
Leave your contact details in the comment box for a free borrowing capacity review and strategy call today!
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