Many of our clients are keen to understand what influences their borrowing power and how they can improve their borrowing capacity to be a step closer to their next home or investment property. Did you know that your credit card limit directly impacts the amount you can borrow? With a simple change it can also be one of the quickest ways to increase your borrowing capacity! Lenders don’t just look at the outstanding balance of your credit cards and your minimum monthly repayments when assessing your loan application. In fact they look at what your total repayments would be if you used the credit card limit in full even though it may not be utilised. The lenders’ rationale is that you have the ability to utilise the limit, so they must take this into account when determining your repayment serviceability. …read more