How to Maximise Your Borrowing Power and Secure the Best Loan Terms
If you’re planning to invest in property, understanding your borrowing power is just as important as choosing the right suburb.
Because while property performance happens over time — loan structure and terms affect your cash flow from day one.
At Focus Property Group, we work closely with brokers and lending specialists to help clients secure the right finance, at the right time, with the right strategy.
Here’s how you can maximise your borrowing power — and get the best possible loan terms.
1. Understand What Borrowing Power Really Means
Borrowing power refers to how much a lender is willing to loan you based on:
Your income
Living expenses
Existing debts
Employment status
Number of dependants
Type of property you’re buying
Interest rate buffer
Lenders apply different formulas, so one bank might approve you for $600k — another for $750k.
✅ Tip: Always compare lenders, not just rates.
2. Reduce Bad Debt and Commitments
Lenders assess your liabilities, not just your debt balances. So:
A $20,000 credit card (even if unused) reduces borrowing capacity
A car loan with $200/month repayments can cost you $30k–$50k in borrowing power
BNPL (Buy Now, Pay Later) services can count against you
✅ Tip: Cancel unused credit limits and minimise personal debts before applying.
3. Keep Your Financials Clean
Lenders are now scrutinising transaction history. They want to see:
✔️ Consistent income
✔️ Low discretionary spending
✔️ No overdrafts or dishonours
✔️ Regular savings or offset balance growth
✅ Tip: In the 3–6 months before you apply, start behaving like a borrower.
4. Choose the Right Property and Structure
Not all properties are treated equally by lenders:
❌ Studio apartments under 40 sqm
❌ Overly regional or high-density off-the-plan units
❌ Properties with unusual titles (e.g. company title)
The type of property can limit the loan-to-value ratio (LVR) or even eligibility altogether.
✅ Tip: We help clients choose lender-friendly, investment-grade properties that maximise both approval odds and future borrowing power.
5. Work With a Strategic Finance Broker
A good mortgage broker doesn’t just get you approved. They:
Match your goals to the right lender
Structure the loan with flexibility (offsets, IO vs P&I)
Help you plan ahead for your next purchase
✅ Tip: Work with a broker who understands property investment, not just lending.
How Focus Property Group Can Help
We partner with strategic finance brokers and help clients:
✅ Improve their borrowing profile
✅ Choose lender-friendly properties
✅ Secure fixed-price investments in high-growth areas
✅ Build a portfolio aligned with finance from day one
📞 Book your free 15-minute strategy call and let’s map out your borrowing strategy today.
1 300 702 885
info@focuspropertygroup.com.au
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IMPORTANT DISCLAIMER: The information provided in this article is for general informational purposes only and does not constitute financial advice. All information is provided in good faith, however, we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information in this article.
Focus Property does not provide financial advice. You should not act upon the content of this article without seeking advice from a qualified professional. The content of this article is not a substitute for professional advice tailored to your circumstances. Focus Property will not be liable for any actions taken or not taken based on the contents of this article.