SPRING CLEAn YOUR BORROWING POWER.
What lenders actually look at and how to boost your borrowing power.
Spring cleaning?
Start with your finances.
Spring's here. Windows are open, wardrobes are cleared, someone's finally washing the car.
But there's one spring clean almost nobody does. And if buying a home is anywhere on your radar, it might be the one that matters most.
Your finances.
Not a big overhaul. Just a tidy-up. A few small changes can make a surprising difference to what a lender is willing to lend you
five small changes
that could make a big difference to what you can borrow.
It's not just your salary times a number.
Lenders are trying to answer one question: can you comfortably afford this mortgage over the long term?
To work that out, they look at:
Your income. (duh)
Your expenses.
Groceries, subscriptions, and that
Friday-night takeaway habit.
Existing debt.
Credit cards, car loans, Buy Now Pay Later.
Your credit history.
How you've handled borrowing before.
Your deposit.
The more you put in, the lower their risk.
Then there's the stress test.
The one that catches almost every first-home buyer off guard. Even if rates are around 6%, a lender may test you at 8% or higher to make sure you'd cope if rates rose. Annoying? A little. But it's there to protect you.
Getting your finances sorted is often the biggest hurdle, but it doesn’t have to be the hardest. Our Finance Guide breaks down deposits, pre-approvals, KiwiSaver, lending and everything in between.
Five things to spring clean this week
1.
Lower your credit card limit.
Even with $0 owing, a high limit can reduce what you can borrow. Yes, really.
2.
Close the Buy Now Pay Later accounts you don't use.
Quiet doesn't mean invisible.
3.
Cancel the subscriptions you forgot about.
That streaming service you watched once? Lenders can see it.
4.
Pay off the small stuff.
Clearing a small loan can free up borrowing power.
5.
Save consistently for a few months.
Lenders love a pattern.
Not ready yet?
Even better.
That's actually the best time to talk to a mortgage adviser. They'll tell you what you're doing well, what to work on, and what a realistic 6–12 month plan looks like.
And they don't charge you a cent, because they're paid by the lender.
Your first move isn't buying a home. It's having a conversation.
Download our free Finance Guide.
Everything above and more, in plain English.
Or chat to Mike on 022 043 3700. Honestly, just do it.
See what we’re building @fouravenuesnz
