This week’s jobs print surprised on the soft side, and suddenly the market’s whisper is: maybe November isn’t dead after all.
A month ago, most people had written off any near-term RBA move. But weaker employment momentum, think slower hiring and a touch more slack, takes pressure off inflation and nudges a November decision back onto the table (even if it’s still a line-ball call).
Nothing’s guaranteed, but the door that looked closed a few weeks ago is now ajar. If you’ve got buyers waiting for “the cut,” maybe now’s the time to refresh numbers, line up documents, and give them a clear plan so they can move fast if November delivers.
All will be revealed at 2:30pm on Melbourne Cup Day.
In this week’s newsletter, we look at how an applicants living situation can have an impact on their borrowing chances.
Your living situation shapes how a bank reads your file, and perhaps counterintuitively, having an existing mortgage is probably viewed most favourably by lenders. Below we look at how banks view those who have an existing mortgage compared to those who rent or live at home with parents.
If you already have a mortgage.
Banks like that you’ve proven you can make repayments, and any equity you’ve built is a plus. The trade-off is they must also count your current loan and repayments, so your borrowing power can shrink. If you’re buying before selling, they’ll dig into cash flow and how you’ll bridge the gap. Keep your conduct spotless (no late payments) and, if you’re keeping the place, expect them to “haircut” the rent they’ll accept in the numbers.
If you’re renting.
A clean 12-month rent history is ideal, it shows you can handle mortgage-like payments. But rent is treated as an ongoing expense, which pulls capacity down a bit. Some lenders will recognise “rent-as-savings” in place of the usual three months of regular savings, so having a tidy ledger and bank statements helps a lot.
If you live with parents.
Lower day-to-day costs can lift your borrowing power, but banks won’t assume your expenses are zero, they use a minimum benchmark (HEM). They’ll want to see you can save consistently, not just receive a lump-sum gift. Set up an automatic transfer and build a pattern; if family is helping, be clear whether it’s a gift or a loan.
What all banks look for (whatever your situation).
Stable income, realistic expenses, sensible credit limits, and clean statements – no overdraws, late fees, or gambling spikes. If you’re close to the line, the lender choice matters: policies differ on things like rent-as-savings, how they treat bonus/overtime, and what rent they’ll count. Get those bits right and your application reads much stronger.
Variable
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR.
1 Year Fixed
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR. At the end of the three year fixed period, the borrowers interest rate will revert to a standard variable rate for the life of the loan.
