Why your borrowing capacity can change even if your income hasn’t

  • Why your borrowing capacity can change even if your income hasn’t

    Updated on Budgeting

    It’s been a while since you last had a salary increase, so the amount you could borrow as a home loan is the same as last time you checked, right?

    Wrong.

    Your salary is only one of the factors that can affect your borrowing capacity. There are many others, relating to changes in the economic and regulatory environment, adjustments in lenders’ loan assessment criteria, and changes in your personal financial circumstances unconnected to your earnings.

    Here are some of the main reasons your borrowing power can change.

  • Living with higher-for-longer interest rates

    Updated on Investing

    Interest rates are rising, and the Reserve Bank of Australia (RBA) has hinted that they could stay elevated for longer than expected. While people who live off their investments, including…

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