Equity Mates Investing Podcast Ask An Adviser: How to max your deposit and boost your borrowing capacity - Chris Bates | Alcove
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Aug 4, 2025 Mortgage broker Chris Bates, founder of Alcove, shares expert tips on maximizing your deposit and borrowing capacity in today’s competitive property market. He discusses how banks evaluate borrowing potential and offers savvy strategies for first-time buyers. Listeners will learn effective ways to manage HECS debt and improve financing options, the importance of smart spending habits, and the benefits of government initiatives like the 5% deposit scheme. This conversation is a goldmine for anyone looking to enhance their mortgage strategy!
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How Banks Calculate Borrowing Capacity
- Borrowing capacity depends on your income, debts, and living expenses the bank assesses.
- Each bank uses formulas and minimum living expenses (HEM), but it varies in income acceptance and debt consideration.
Cut Credit Limits to Borrow More
- Keep credit card limits low as banks assess your limits as potential debt reducing borrowing capacity.
- After home purchase, you can increase limits, so temporarily reduce them before applying for a loan.
HECS Debt Affects Borrowing Capacity
- Paying off your HECS debt within a year can increase borrowing capacity under certain lenders like CBA.
- Higher income means bigger repayments and a bigger impact on borrowing capacity, so clear HECS if possible.