The Reserve Bank’s latest rate cut doesn’t just mean lower repayments, it could also mean your borrowing power has shifted more than you think.
Every time the cash rate moves, lenders review their serviceability buffers. That shift can open up extra borrowing capacity on paper. PropTrack economist Angus Moore estimates that every 0.50 percentage point change in the cash rate can boost borrowing power by around 5%.
For some buyers, that 5% isn’t just a number. It could be the difference between missing out and finally securing the property they’ve been waiting for.
Why borrowing power isn’t the same everywhere
Here’s the catch: your borrowing power isn’t a one-size-fits-all number. Every bank has its own credit policies and appetite for risk, which means the amount you can borrow can vary by tens of thousands of dollars between lenders.
That’s why a smart lending strategy matters. It’s not about chasing the lowest rate, it’s about finding the right balance of borrowing power, flexibility and long-term fit for your goals.
Beyond the numbers: why strategy matters
Yes, a bigger borrowing capacity is exciting. But the smartest move is looking at it in the context of your bigger picture.
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Borrowing too much can create stress.
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Borrowing strategically can create opportunity
Whether you’re buying your first home, upgrading for your family, or building a portfolio, the right loan structure today can shape your financial path for years to come.
Time to review your borrowing power
With three rate cuts this year and lenders adjusting their buffers, now is the perfect time to review where you stand. Even if you checked six months ago, your position may look very different today. That doesn’t mean rushing to borrow more, it means taking a clear look at how those changes fit your overall strategy.
The right structure today can open the door to opportunities tomorrow.
👉 Want to know if your borrowing power has shifted? Let’s talk.
