Refinancing can be harder when borrowing capacity has fallen due to higher living expenses, changed income, new debts, dependants or lender serviceability buffers. Even if your current rate is high, a new lender will assess your servicing capacity under its current criteria — which may be tighter than when you first borrowed.
What may affect your borrowing capacity
- Higher living expenses and household spending
- Changed income — new job, reduced hours, self-employed changes
- New debts — credit cards, personal loans, car finance
- Dependants and family changes
- Lender serviceability buffers and assessment rates
- Interest rate changes since your original loan
What we may check
We help review your current financial position and what may be realistic before you apply. This may include looking at your income, expenses, existing debts, equity position and how different lenders may assess your servicing.
The goal is to help you understand whether refinancing is likely to be worthwhile and achievable — before you spend time on applications that may not succeed.
General information only. This page does not provide legal, tax, financial or credit advice. It is not a loan approval, pre-approval, quote, recommendation or offer of credit. Borrowing capacity, loan suitability and approval are subject to full assessment, lender credit criteria, verification of your information, responsible lending obligations, property valuation and product availability. Obtain Finance does not compare every lender or product in the market. Eligibility for government grants, concessions and schemes depends on current government rules and your circumstances — always confirm eligibility with Revenue NSW or an appropriate professional.
Michael Short is a Credit Representative (468493) of an Australian Credit Licence holder (ACL 389328).