30/10/2026
And just like that, we’re heading into that time of year where the calendar fills up and the spending subtly creeps up. 🗓️
First, it’s the November sales. Then it’s the Christmas presents, the end-of-year catch-ups, and the summer holidays.
December is always great fun, but it's easy to lean on credit cards or Buy Now, Pay Later (BNPL) to get through the festive season. And once the holiday dust settles, those January statements can arrive with a bit of a hangover. 🏖️💳
If buying a home or refinancing is on your radar for the new year, that January "bill shock" can sting in ways you might not expect... because banks look at your spending a little differently than you do.
Here is the thing most people don’t realise about credit:
1. Lenders care about your limit, not just what you owe
You might only have a $200 balance on a card with a $10,000 limit, and you might pay it off in full every month.
To a bank assessing a home loan, that doesn't matter. They calculate your borrowing power as if that entire $10,000 is maxed out at standard credit card interest rates. That unused card sitting in your wallet could quietly wipe tens of thousands of dollars off your borrowing capacity.
2. BNPL isn't invisible money
Services like Afterpay and Zip are super convenient, but lenders review your bank statements line by line. Multiple open BNPL accounts and regular repayments count as living expenses and debt commitments, which can quickly pull down the amount you're eligible to borrow.
3. Small changes make an immediate difference
The good news? It’s completely fixable. Lowering an unnecessarily high credit card limit, closing store cards you never use, and winding down BNPL accounts before you apply for a loan can give your borrowing capacity an instant boost.
January doesn’t have to be the scary month. A quick cleanup of your limits and accounts now means you’re in the best possible position when you’re ready to make a move on property.
Planning to buy or review your loan in 2027? Send us a DM or book a chat via the link in our bio to see where your numbers actually stand. 👋
