💳 Borrowing Power & Credit Cards: Real Case Study Shows $200K Impact
If you’re wondering how much of a difference credit card limits make on your borrowing power, here’s a real-world case study that shows exactly how it works — and why it matters.
👩💼 Meet William & Anne
William earns $205,000 p.a. in stable, full-time employment
Anne earns $113,000 p.a. in stable, full-time employment
Together, they’re refinancing and planning for a future property purchase.
🔍 Lenders assess the limit, not the balance — meaning even unused credit can reduce your borrowing power.
🏠 Refinancing Goals
Refinance their home and a second property
Consolidate a $68,000 car loan to improve cash flow
Understand their borrowing power for future purchases
🏘️ Current Asset Snapshot
🏡 Home (Owner Occupier):
Value: $1.4M
Loan: $368K
Equity: $1.03M
🏠 Second Property (Parent's Home):
Value: $800K
Loan: $174K
Equity: $625K
🚗 Car Loan (Toyota LandCruiser):
Value: $100K
Loan: ~$68K
Equity: ~$32K
💡 Key Insight
“Even unused credit limits can chip away at your borrowing power. Reducing limits or cancelling unused cards before applying can make a significant difference.”
🎯 Next Steps for William & Anne
Review and reduce credit card limits
Refinance and consolidate high-interest debt
Prepare a clean, lender-friendly profile for their next purchase
✅ Want to Maximise Your Borrowing Power?
Let’s run the numbers together. In just 15–30 minutes, we can give you an estimate of your borrowing potential and help you map out your next move.
📩 Book a Complimentary Discovery Call, and let’s work out your property purchasing strategy together.
The information contained is general information only and does not consider your objectives, financial situation and needs. Not all lenders have the capacity to approve loans in under two hours. Please talk to us if you need a fast-tracked home loan, and we can help you find a lender that has the processes in place to process the application quickly. We strongly recommend that you do not act on any information provided on this website without individual advice from your trusted advisor. You should also obtain a copy of and consider the Product Disclosure Statement for all financial products before making any decision.
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