How Three Clients Bought Their First Home With Low Borrowing Capacity

Introduction

If you’ve been told your borrowing capacity isn’t enough to buy a home, you’re definitely not alone — and it doesn’t have to stop you. Today, I’m sharing three recent client scenarios where we successfully helped buyers get into the market despite low borrowing capacity, using smart restructuring, strategy, and creative options that many people don’t realise are available.

How Three Buyers Got Approved With Low Borrowing Capacity

Buying a home can feel impossible when lenders say you don’t qualify for the amount you need — but the good news is, there are many ways to increase or work around limited borrowing capacity. Here’s how three clients did exactly that.

1. Using Part of Their Deposit to Clear Debt (and Boost Capacity)

One of the quickest ways to improve borrowing power is to reduce or eliminate personal debt.
A recent client came to us with a solid deposit but had high-interest credit card and personal loan balances dragging down their borrowing ability.

The Strategy:

We reviewed their debts and worked out how much of their deposit could be used to clear them
This freed up monthly cashflow
With fewer commitments, their serviceability instantly improved
Their borrowing capacity increased enough to qualify for the home they wanted

Even though they reduced their cash deposit, the overall result was better: they got approved and bought their home sooner.

2. Combining Forces Through Property Share (Co-Buying)

Another client felt stuck because their income on its own didn’t allow them to borrow enough to buy in their preferred area.
Co-buying turned out to be the perfect solution.

What We Did:

They teamed up with a sibling to buy together
Their combined income meant a stronger borrowing assessment
They were able to enter the market without waiting another 2–3 years
A co-ownership agreement was put in place to protect both parties

Co-buying is becoming an increasingly popular stepping stone for younger buyers and those struggling with rising prices.

3. Switching the Strategy: Investing Instead of Buying to Live In

Sometimes the problem isn’t that the client can’t buy — it’s that they can’t buy where they want just yet.

One recent buyer desperately wanted to live in a certain suburb, but their borrowing capacity didn’t stretch that far.

Our Solution:

We explored more affordable suburbs with strong rental demand
They purchased an investment property with a much smaller loan size
They continued renting where they wanted to live
Their equity will now grow, giving them stepping-stone potential for a later upgrade

This “rent where you want, buy where you can afford” strategy helps buyers get into the market without delaying wealth building.

The Big Lesson: Low Borrowing Capacity Is a Challenge, Not a Dead End

Whether it’s reducing debt, pairing up with someone, switching to an investment purchase, or exploring guarantor options, there is almost always a solution when you understand the levers that influence borrowing capacity.

If you’ve been told “no,” it might just mean “not that way.”

Need Help With Your Borrowing Capacity?

If you’re unsure where you stand or want to explore your options, you can book a chat with me anytime:
👉 Book a meeting