Boost Your Borrowing Power with Smart Budgeting

Reassess Your Budget & Boost Your Savings

Lenders want to see a solid savings history and responsible money management. That’s why it’s crucial to create a realistic budget and stick to it. Review your spending over the last few months, trim non-essential expenses, and set up automatic savings transfers so your savings grow consistently.

Set a Clear Deposit Goal

Before you set a savings target, work out how much deposit you’ll need. A minimum of 5% is required, but if you can aim for 20%, you’ll avoid paying Lenders Mortgage Insurance (LMI), potentially saving you thousands. Knowing your goal helps you stay focused and makes budgeting easier.

Tidy Up Your Debts & Reduce Your Credit Limits

When assessing your application, lenders consider your existing debts and your ability to take on more. Paying off credit cards and personal loans will boost your borrowing capacity. Even unused credit cards with high limits count against you, so reduce your limits or cancel unnecessary cards if you’re serious about applying for a loan.

Consider Debt Consolidation

If multiple debts are holding you back, it might be time to consolidate. High-interest debts like credit cards, store cards, and personal loans can often be rolled into a lower-rate personal loan, or even a home loan if you already have one. This could reduce your repayments and interest, helping you get your finances under control faster.

Real-Life Scenario

Take James and Tahlia. They were eager to buy their first home but had three credit cards, two personal loans, and no real savings strategy. After chatting with Mortgage Matrix, they created a clear budget, consolidated their debts into a single lower-interest loan, and cancelled unused credit cards. Within 6 months, they had built a steady savings habit and improved their borrowing power.

“We honestly didn’t know where to start,” said James. “Mortgage Matrix helped us understand exactly what was holding us back. They gave us a clear plan to follow, and now we’re living in our very first home. We couldn’t have done it without them.”

Let’s Get You Home Loan Ready

The end of the financial year is a great time to take action—your tax refund could be the perfect savings boost to get you started. At Mortgage Matrix, we’re here to help you take control of your finances, boost your borrowing capacity, and get into your first home sooner.

Book your free appointment today and let’s build your path to home ownership.