How to Boost Your Borrowing Capacity

Are you looking to buy a new home or an investment property? One of the most important steps is understanding how to maximise your borrowing capacity. Here are a few quick ways to improve yours:

1. Cut back on spending - your capacity to borrow is based on your income minus expenses. Reducing silly spending will help tremendously.

2. Cut your debts - things like car loans and credit cards can significantly reduce your borrowing.

3. Tidy up your credit score - make sure there are no red flags and you have a healthy credit history. Things like paying bills on time is important.

Avoid easy money traps - payday loans or buy now pay later, can hit your credit score and also look bad from the lenders’ perspective.