How to Boost Your Borrowing Power in 2025

If you’re dreaming of a new home or investment property in 2025, boosting your borrowing power is step one. But what does that actually involve?

Borrowing power — also called your loan eligibility — is the amount a lender is willing to lend you, based on your income, expenses, debts, and credit history. Improving it can significantly increase your chances of approval and open up better lending options.

Here’s how to do it:

✅ Reduce your debt-to-income ratio – Lenders closely examine how much you owe compared to what you earn. Paying down personal loans and credit cards can boost your capacity to borrow.

✅ Maintain a strong credit history – Timely repayments, no defaults, and a clean credit file will improve your credit score, which most lenders use to determine your risk level.

✅ Build genuine savings – Lenders want to see that you’re financially responsible. Savings built over time (especially 3–6 months or more) shows discipline and financial security.

✅ Limit unnecessary credit applications – Each loan or credit card application leaves a footprint. Too many applications can reduce your score and make you appear risky.

✅ Consider dual incomes – Applying as a couple or with a co-borrower may significantly lift your borrowing capacity.

✅ Work with a broker – At iChoice, we can review your profile and match you with lenders who assess borrowing power more favourably for your situation — including those that accept family tax benefits, bonuses, or alternative income streams.

Improving your borrowing power doesn’t happen overnight, but the right strategy, support, and expert guidance can make all the difference. Let’s plan your path to loan approval.