Spring’s here, and so is the heat in the property market.
We’re seeing the return of tactics that only surface in highly competitive conditions:
- best and final offers
- race-to-exchange contracts
- section 17 waivers (signing away your cooling-off period to secure the property fast)
For buyers, it feels a little like stepping into the Wild West. Agents are back in charge, sellers are dictating terms, and hesitation can mean losing the home you want.
The key to surviving this kind of market? Having your finance locked and loaded early. But not all pre-approvals are created equal. Which lender you choose can mean tens of thousands of dollars difference in what you can actually offer when it counts.
Why lender choice matters more than ever
So the question isn’t just can I borrow enough, but how much more could I borrow if I pick the lender who treats my situation favourably.
So what does an extra 10% really mean?
It’s not about stretching yourself to the point of risk, it’s about having the option when you need it. In today’s competitive market, being able to bid 5–10% more could be the difference between securing the right property or missing out by $20–50k.
And here’s the perspective most buyers forget: on a $700,000 home, 10% is $70,000. With average property growth of 3–5% a year, that gap can be made up in just a year or two of ownership. In other words, the “stretch” might not feel so big when you consider what the market is likely to do over the next few years.
Of course, not everyone needs that extra 10%. But knowing it’s there if you do can give you a crucial edge, without forcing you to use it recklessly.
Borrowing power swings – how lender policies make a big difference
A few percentage points here and there, or a favourable policy twist, can equate to $20,000–$80,000 difference in what you’re able to bid. Here are the specific policy areas where lenders are diverging — what to watch for, what to ask about, and what’s changed lately.
Key areas where lenders are offering flexibility or advantage
Here are several lender and policy levers that can boost your borrowing capacity, along with the most recent changes that matter.
First home buyers and savings
- CBA only requires one month of genuine savings, rather than three. So if you’ve just consolidated accounts, sold an asset, or received family help, you don’t need to wait around — you could buy sooner.
- Some lenders also accept rental history as evidence of genuine savings, giving renters a fairer chance to qualify.
HECS and HELP debts
- NAB (from July 2025) now ignores HECS balances under $20k in their servicing calculations.
- CBA (updated April 2024) excludes HECS if it’s due to be fully repaid within 12 months, or applies a lighter buffer if the balance will be gone within five years.
These updates are significant: depending on your balance, you could gain tens of thousands in extra borrowing power with these lenders compared to others.
Units, townhouses and strata costs
- CBA, NAB and St George include strata fees inside their living expense benchmarks (HEM). For buyers of units or townhouses, this can mean higher borrowing power compared to lenders that treat strata as an “extra” outgoing.
Self-employed borrowers
- CBA and ANZ will sometimes rely on salary credits if you pay yourself regularly, instead of waiting for the next set of tax returns.
- CBA, NAB and ANZ also accept just one year’s tax returns — no need for BAS or future projections.
This is a big advantage if you’re profitable now but still mid-cycle with your tax paperwork.
Business owners with company debt
- Macquarie allows profitable businesses to ignore certain company debts (like equipment loans or leases) when assessing serviceability. This can free up substantial borrowing power for directors who might otherwise be penalised.
How much more borrowing power are we talking?
When you stack these differences against real scenarios, the impact is clear.
- HECS treatment: A buyer with a $19,500 HECS balance might see up to $40–80k more in borrowing capacity with NAB’s updated stance than with a lender who still counts it in full.
- Genuine savings: A first home buyer with a family gift could qualify months earlier under CBA’s one-month savings rule than if they had to wait and show three months’ history elsewhere. That can mean getting into the market sooner, before prices move further.
- Strata costs: Unit buyers paying $500 a month in levies might be assessed as $30–50k less capable with some lenders. With lenders like CBA or St George, who include strata within HEM, that difference disappears.
- Self-employed: Business owners using ANZ or CBA policies could secure approval with just one year’s return, rather than waiting another full cycle. That opens up opportunities right when markets are moving.
In a competitive market where auctions are often decided by $20–30k, these differences are not theoretical — they’re often the deciding factor between walking away with the keys or walking away disappointed.
What you should do to maximise your borrowing power
Here’s your strategy checklist:
- Get fully assessed pre-approval, not just a quick online estimate.
- Know your HECS/HELP details, including balance, repayment timeframe and whether you’re close to clearing it.
- Have your genuine savings story ready — whether that’s consolidation, rental history, or a recent asset sale.
- Choose lenders with favourable policies for your case, especially if you’re self-employed or a business owner.
- Understand how strata and living costs are assessed, especially if you’re buying a unit or townhouse.
- Be ready to act fast. In this market, finance strength is what lets you move quickly when the agent demands it.
Our take
We’re seeing the biggest lender policy shifts in years, particularly around HECS, genuine savings and self-employed income. For many buyers, especially first home buyers or business owners, these changes aren’t just footnotes — they reshape what you can afford.
If you play your cards right, you could unlock up to 10% more borrowing capacity. That could mean the difference between securing your dream home or getting edged out.
Don’t leave these policy surprises to chance. Sit down now, map your financial position across lenders, and come to the market with a plan.
Book a free 30-minute finance strategy session — no pressure, no waffle, just straight-up advice.
About the Author
Since 2008, David Thomas has built a business aimed at servicing the needs of property investors, owner occupiers and small business owners. David is recognised as one of the top 10 independent mortgage brokerages in the country, David and his team have settled almost billions of dollars worth of residential and investment loans over the last decade.
Known for his straightforward, relatable style, David believes by educating people about property funding; they fare better in the market. By sharing his expertise openly, some of the people he educates will likely become his clients. It's a win-win approach.
David Thomas is a credit representative (Representative Number 506153) of BLSSA Pty Ltd, ACN 117 651 760 (Australian Credit Licence 391237).