How Do Your Debt and Expenses Impact Your Application?

Explore how your debt and expenses help determine whether you can afford your repayments.

As part of your serviceability assessment, your debt and expenses are reviewed. Alongside your income, your debt & expenses will help us determine whether we think you can afford to repay the amount you are seeking to borrow.

What is debt?

Debt is any money owed and typically is a contractual agreement between a credit provider & yourself. It can be either secured or unsecured. Examples include:

  • Existing home loans including owner occupied or investment.
  • Credit Cards – maximum credit limit is taken into account.
  • Other loans including personal, car, business and margin loans.
  • HECS-HELP
  • Line of Credit
  • Overdraft

What is an expense?

An expense is an outgoing payment that goes towards your monthly household expenditure. This can cover a wide variety of payments including:

  • Food & Household supplies
  • Utilities and Maintenance Costs – Strata, Water, Electricity, Council Rates, Insurance, etc.
  • Communication Bills – Phone, Internet and Subscription services such as Netflix, Spotify, Kayo, etc.
  • Transport & Automotive – Public Transport, Car Registration, Insurance, Petrol, Tolls, etc.
  • Medical, Health & Fitness – Gym memberships, prescriptions, eye care, dental, beauty appointments including hair, etc.
  • Entertainment – Movies, Alcohol, Holidays, Dining Out, etc.

Your financial obligations towards another person – for examples, dependents in your household, is also considered to be part of your expenses.

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