Understanding Borrowing Capacity in Australia: How Different Banks Can Offer You Different Options

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Picture this: you’re shopping for a new outfit. You know your size and style, but the options are endless! Each store has different brands, fits, and prices.

It’s kind of like that when it comes to borrowing money in Australia. Different banks offer different “loan outfits” with varying borrowing capacities, interest rates, and features.

Why Do Banks Offer Different Borrowing Capacities?

Think of each bank as having its own personality, with different risk preferences and ways of assessing your financial “fitness.” Some banks might be more cautious, like a high-end boutique with strict criteria. Others might be more relaxed, like a trendy shop offering flexible options.

Here are some factors that contribute to these variations:

    • Risk Appetite: Some banks are more willing to lend to borrowers they perceive as “low risk,” while others are more open to those with a more complex financial history.

    • Assessment Methods: Each bank has its own formula for calculating your borrowing capacity, considering factors like income, expenses, credit history, and employment.

    • Loan Product Features: Different loan products, like home loans and car loans, have varying eligibility criteria and features that can impact your borrowing capacity.

    • Internal Policies: Each bank has its own internal guidelines that influence their lending decisions.

Finding the Best Fit for Your “Financial Wardrobe”

Just like you wouldn’t buy the first outfit you see, it’s important to shop around for the best loan offer. Here are some tips:

    • Compare Offers: Talk to different lenders and compare their borrowing capacity estimates, interest rates, fees, and loan features.

    • Consider Your Needs: Think about what’s important to you, like a low interest rate, flexible repayment options, or a specific loan product.

    • Negotiate: Don’t be afraid to negotiate with different banks to get the best deal possible.

    • Seek Advice: A financial advisor can help you understand your options and make informed decisions.


    • Borrowing capacity is just one piece of the puzzle. Consider all aspects of the loan, including the total cost and repayment terms.

    • There’s no “one size fits all” loan. The best option for you will depend on your individual circumstances and financial goals.

Clear Pacific: Helping You Dress for Financial Success

At Clear Pacific, we believe in offering personalized financial solutions that fit your individual needs. Just like a good tailor, we’ll work with you to understand your financial goals and create a customized “loan outfit” that helps you achieve them.

We add fresh insight into our clients’ efforts to shop around for best interest rate as part of our Best Price Guarantee.  We cover all bank fees with our true zero cost program True Zero Cost Loan Program.

In other words, you will get best rates from best lender, and don’t have to pay any fees.  Also, we shop around for best cashbacks too. 

Find out your borrowing capacity in minutes. Our services are 100% free.  All it takes to know your options is 7-10 min discovery call.  No commitments.  

We hope you see the value here in making the call.  Let’s find a time to chat Book here

7 Minutes.  No obligations.              


Our mortgage company is committed to providing expert guidance and tailored solutions, helping you navigate the path to homeownership with ease and confidence.

CRN No: 545428

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