Borrowing Capacity Tips and Tricks: How to Unlock More When Refinancing
If you’ve ever wondered how lenders decide how much you can borrow — or felt frustrated that your borrowing capacity isn’t where you expected it to be — you’re not alone.
Borrowing capacity isn’t a fixed number. It changes over time, and in many cases, refinancing your home loan can play a key role in improving it.
Here are some practical tips and tricks to help you understand borrowing capacity — and how refinancing can open up new opportunities.
Tip 1: Understand That Borrowing Capacity Is About More Than Income
Many people assume borrowing capacity is based purely on how much they earn. In reality, lenders look at the full picture — income, expenses, existing debts, and how your current home loan is structured.
Even if your income has increased, an inefficient loan structure or high assessed repayments can still limit how much lenders are willing to offer.
Tip 2: Refinancing to a Lower Rate Can Improve Serviceability
One of the simplest ways refinancing can help borrowing capacity is by reducing your interest rate.
Lower interest rates can reduce assessed repayments in lender calculations. If your loan costs less to service on paper, you may be able to borrow more — even if your real-world repayments already feel comfortable.
This is especially relevant if your loan hasn’t been reviewed in several years.
Tip 3: Loan Structure Matters More Than You Think
Older loans often use structures that no longer suit how people manage money today.
Refinancing gives you the opportunity to restructure your loan — for example, improving offset usage or adjusting repayments — which can positively influence how lenders assess your position.
A better structure can sometimes unlock capacity without increasing risk.
Tip 4: Improved Cash Flow Can Strengthen Your Position
Refinancing can improve cash flow by reducing repayments or consolidating higher-interest debts.
Better cash flow doesn’t just feel easier — it can also improve how lenders view your overall financial position, particularly when paired with controlled spending.
Tip 5: Equity Growth Can Open New Doors
If your property has increased in value, refinancing can unlock that equity.
A stronger loan-to-value ratio may open access to better lenders, sharper rates, or borrowing options that weren’t previously available.
When equity is involved, it’s important that borrowing decisions align with long-term goals. Educational resources from
The Accountants
can help provide useful context around structuring and strategy.
Tip 6: Outdated Lending Decisions Don’t Define You
Many homeowners assume their borrowing capacity is capped because that’s what they were told years ago.
But lending policies change, interest rates move, and personal circumstances evolve. Refinancing allows your position to be reassessed under current conditions — not old assumptions.
This reassessment alone can sometimes unlock opportunities.
Tip 7: Reducing Existing Commitments Helps More Than You Think
Credit cards, buy now pay later facilities, and personal loans all impact borrowing capacity.
Refinancing can be an opportunity to simplify or restructure commitments, improving serviceability and presenting a cleaner financial picture to lenders.
Tip 8: Borrowing More Isn’t the Goal — Borrowing Smarter Is
Increasing borrowing capacity doesn’t mean stretching yourself unnecessarily.
The real goal is flexibility — knowing what’s possible and structuring borrowing in a way that’s sustainable and aligned with your future plans.
Tip 9: Strategy Matters as Much as Numbers
Two people with the same income can have very different borrowing capacities depending on how their finances are structured.
This is where experience and strategy make a difference — especially when refinancing is involved.
Tip 10: Get the Right Guidance Before You Assume Limits
Borrowing capacity is one of the most misunderstood parts of lending.
Chase Douglas has extensive experience in mortgage lending and works with homeowners to identify whether refinancing could improve their borrowing position — and how to do it responsibly.
Chase looks at your current loan, cash flow, equity, and goals, then helps you understand what’s realistically possible before you make your next move.
Want to Know What You Could Actually Borrow?
If your circumstances have improved since you first took out your mortgage, there’s a strong chance your borrowing capacity has too — even if no one has told you.
Refinancing could be the key to unlocking options you didn’t realise were available.
👉 Book a borrowing capacity review with Chase Douglas and find out whether your current loan is helping you move forward — or holding you back.
One conversation could change what’s possible next.
