If your ability to get into the property market has been hampered by your capacity to borrow, then there is some good news on the horizon. The new financial year will see a spike in many borrowers’ borrowing capacity. Here’s how.

The Labor Government’s Stage 3 tax cuts were introduced to help Australians put more money back in their pockets in a measure to help ease current cost of living woes. Some 13.6 million Australians will see their current 32.5% tax bracket be reduced to 30% and the lowest tax bracket of 19% will be shaved to 16%.

Of course, each borrower will be impacted differently depending on their unique circumstance and lender of choice but can expect some increase in what they are able to borrow. Though it is important to remember that there are other strategies to help increase your borrowing capacity. These include:

• Cancelling or reducing limits on credit cards.
• Paying our personal loans if possible.
• Reviewing discretionary expenditure and cutting back on spending.
• Auditing regular expenses such as insurances and communications to seek more competitive alternatives.
• Eliminating Buy Now, Pay Later facilities.

The best way to find out what you may be able to borrow come the start of FY2025 is to speak to your mortgage broker and crunch the numbers. There may be options available to you that were not there a year ago and we also give you some assistance to get you well placed to realise your financial goals sooner.

We will do our best to make your new financial year the happiest yet.