Why the Start of the Financial Year Is the Smartest Time to Review Your Borrowing Power

The new financial year isn’t just about lodging your tax return — it’s also a prime opportunity to reassess your financial position and explore what’s possible when it comes to borrowing.

Whether you’re a PAYG employee, self-employed, or a business owner, your updated financials could tell a very different story compared to 12 months ago. And in the world of lending, that difference can mean everything.

At this time of year, a serviceability review — an assessment of your ability to repay a loan — can provide valuable insights into what lending options are available to you now, not based on last year’s outdated numbers.

So, what’s changed?

Lenders use your most recent income and expense data to calculate your borrowing power. If any of the following apply to you, there’s a good chance your serviceability has improved, or at least changed, since your last application:

• You’ve just completed a full financial year with stronger income
• You narrowly missed out on a loan in FY24
• You’ve had a promotion, pay rise, or added a second income stream
• You’re self-employed and now have updated financials and tax returns
• Your debt levels or living expenses have decreased
• You’re preparing to buy property, refinance, or invest in your business

If any of these sound like you, now’s the time to find out where you really stand.

Key Takeaway? You Shouldn’t Wait to Book a Lending Review

1. Updated financials can increase your borrowing power

With a full year of income (and tax returns for business owners), lenders have a clearer picture of your financial position. This often results in stronger borrowing potential — especially if your circumstances have improved.

2. You may now qualify for better lending products

Even a small shift in your income, expenses, or debt could open the door to better rates, more competitive products, or even a higher approval limit. But you won’t know unless you check.

3. Timing is everything

Property markets are seasonal. Investment opportunities can be time-sensitive. And when you’re ready to act, having your borrowing reviewed early means you’re not caught off guard or scrambling to pull together documents at the last minute.

4. What you don’t know could be costing you

Not knowing your updated borrowing position could mean missing out on favourable loan terms or putting plans on hold unnecessarily. A simple review could be the difference between moving forward or sitting on the sidelines.

What Happens in a Lending Review?

A lending review is a straightforward, obligation-free process. One of our brokers will sit down with you (in person or virtually) to review your income, expenses, liabilities, and financial goals. From there, we can give you a clearer picture of your current borrowing power and help you understand what’s possible moving forward.

We work with both PAYG employees and self-employed clients across residential, commercial, and business lending — and we’re here to make the process clear, practical, and tailored to you.

Let’s Talk About What’s Possible

If you’re unsure whether your position has changed or think you might be in a better spot than last year — let’s find out.

There’s no cost to review your lending position, but the opportunity cost of not doing it could be high.

Let’s explore what’s changed — and how that could work in your favour. Give our team a call today and

Disclaimer: This article is general in nature and does not constitute financial or credit advice. It has been prepared without taking into account your personal objectives, financial situation, or needs. Before making any financial decisions, you should consider whether the information is appropriate to your situation and seek professional advice from a qualified finance or credit professional.