Borrowing power guardrails: the 5 things that quietly crush servicing (and how to avoid them)

Borrowing power doesn’t usually fall because one big thing goes wrong. It falls because a few small things stack up, often mid-process. The solution is guardrails: simple rules that protect capacity before you refinance or buy again.

Why borrowing power changes mid-process

Borrowing power can change because of:

• rate movements and lender assessment changes

• updated living expense treatment

• credit limits and liabilities becoming more visible

• property type and postcode policy changes

• changes in your spending patterns during the application period

The five common servicing killers (and the practical fixes)

1. High living expenses in statements

   • Fix: tighten “leakage” categories for a period and keep patterns consistent.

2. Credit card limits (even if unused)

   • Fix: reduce limits or close unused cards before applying.

3. Car loans and novated leases

   • Fix: understand the servicing impact early and plan timing around major commitments.

4. HECS/HELP and other ongoing deductions

   • Fix: model with and without it and avoid surprise shortfalls late.

5. Multiple “small” debts and subscriptions

   • Fix: clean up Buy Now Pay Later (Afterpay), personal loans, and recurring expenses that add up.

How to protect borrowing power before refinancing or buying again

• Run a servicing check early, before you start inspections or refinance paperwork.

• Avoid new credit enquiries during the process.

• Keep buffers visible and cash flow simple.

• Plan big changes (job changes, car upgrades, large purchases) outside the finance window.

Want a borrowing power review with clear levers and guardrails? Book a call.

General information only. This article is not personal advice and does not take into account your objectives, financial situation or needs. Credit and lending outcomes depend on your circumstances, the security property and lender policy.