Does getting pre-approval affect my credit score?

A formal pre-approval involves a credit check which creates an enquiry on your credit file. Multiple enquiries in a short period can slightly reduce your credit score. A pre-qualification or indicative assessment from a broker may be done without a formal credit check.

How long does a borrowing power assessment take?

An online indicative estimate takes seconds using a calculator like Calcy's. A formal pre-approval from a lender typically takes 3–5 business days depending on the lender and the complexity of your application.

Does my borrowing power change if interest rates change?

Yes — borrowing power and interest rates move in opposite directions. When the RBA raises rates, borrowing power decreases. When rates fall, borrowing power increases.

Can I borrow more by using an offset account?

An offset account reduces the interest you pay on your loan but does not increase your assessed borrowing power. Lenders calculate your capacity based on the full loan amount, not the effective balance after offset.

What if my borrowing power is less than I need?

Save a larger deposit; reduce existing debts to improve serviceability; apply with a co-borrower; target a lower purchase price; or wait for rates to fall (which increases borrowing power). A mortgage broker can help you identify which approach is most effective.

How much can I borrow? Understanding borrowing power in Australia

Find out how Australian lenders calculate borrowing power, what factors affect it, and how to maximise yours. Includes free borrowing power calculator.