How Refinancing Can Increase Your Borrowing Capacity
If you’ve ever been told you can’t borrow any more — or that your borrowing power is limited — it can feel like a hard stop.
What many homeowners don’t realise is that borrowing capacity isn’t fixed. In fact, refinancing your home loan can often open up opportunities to increase your borrowing power, sometimes significantly.
If your circumstances have improved since you first took out your mortgage, there’s a strong chance your current loan is no longer helping you move forward.
Your Borrowing Capacity Is Linked to Your Loan Structure
Borrowing capacity isn’t just about income. Lenders look at how much you earn, how much you spend, and how your existing loan is structured.
Older home loans often have higher interest rates, fewer features, or inefficient structures that increase assessed repayments — even if you’re managing them comfortably.
When lenders calculate borrowing capacity, higher assessed repayments can reduce how much you’re able to borrow for your next goal.
Lower Rates Can Mean Higher Borrowing Power
One of the most direct ways refinancing can improve borrowing capacity is by reducing your interest rate.
Lower rates can lead to lower assessed repayments, which may improve serviceability under lender calculations. In simple terms, if your loan costs less to service on paper, lenders may be willing to lend you more.
This can be especially powerful if your loan hasn’t been reviewed in years and is no longer competitive.
Refinancing Can Improve Cash Flow — and That Matters
Improved cash flow doesn’t just feel good — it can also change how lenders view your finances.
Refinancing may reduce monthly commitments or restructure debts in a way that frees up cash. This can improve your overall financial position and, in some cases, positively influence borrowing assessments.
When combined with better budgeting or expense control, refinancing can help present a stronger picture to lenders.
Equity Growth Plays a Big Role
If your property has increased in value since you purchased it, refinancing can unlock that growth.
Higher property values can improve your loan-to-value ratio, which may open up access to better rates, different lenders, or the ability to use equity strategically.
When equity is involved, it’s important that decisions align with your broader financial goals. Educational resources from
The Accountants
can help provide useful context around structuring and long-term planning.
Refinancing Can Replace an Outdated Assessment
Many homeowners assume their borrowing capacity is limited because that’s what they were told years ago.
But lending policies change, interest rates move, and personal circumstances evolve. Refinancing allows your situation to be reassessed under current conditions, rather than being anchored to an old loan or outdated assumptions.
For some people, this reassessment alone is enough to unlock new possibilities.
It’s Not Just About Borrowing More — It’s About Borrowing Smarter
Increasing borrowing capacity isn’t about stretching yourself unnecessarily.
Done properly, refinancing can help ensure any additional borrowing is sustainable, structured correctly, and aligned with your future plans — whether that’s upgrading, investing, or consolidating.
This is where experience and strategy matter just as much as numbers.
Why Chase Is Central to This Conversation
Refinancing to improve borrowing capacity requires more than a rate comparison.
Chase Douglas has extensive experience in mortgage lending and works with homeowners to identify whether refinancing could improve their borrowing position — and if so, how to structure it properly.
Chase looks at your current loan, income, expenses, and goals, then guides you through options that genuinely support your next step rather than creating unnecessary risk.
Are You Being Held Back by an Old Loan?
If you’ve grown professionally or financially since taking out your mortgage, there’s a strong chance your loan hasn’t kept up.
Refinancing could be the key to unlocking borrowing capacity you didn’t realise was available.
👉 Book a refinance and borrowing capacity review with Chase Douglas and find out whether your current loan is helping — or holding you back.
One conversation could open the door to your next move.
