Borrowing Power Assessment for Joseph (NT, Self-Employed)

Snapshot of Financial Position

Detail	Amount / Notes
Age	49
Employment	Self-employed (ABN held for 5 years)
2024 FY Income	$300,000 (Declared on NOA)
Rent Paid	$550 / week
Savings / Deposit	$50,000
Superannuation	Joseph: $140,000 Partner: $70,000
Credit Cards	1 card (limit $7,000)
Dependents	0
Investment Property	1 (NT 0831)
Outstanding Investment Loan	$470,000
Property Value	$611,000
Monthly Mortgage Repayments	$3,000
Rental Income	$700 / week
Car Loans	None

Borrowing Power Breakdown

Income Considered by Lenders

Declared self-employed income: $300,000 (2024 NOA)
Rental income (80% loading): $700 × 52 × 0.8 ÷ 12 ≈ $2,427 / month
Total assessed monthly income: ≈ $27,427

Existing Monthly Commitments

Investment mortgage: $3,000
Rent on current residence: ≈ $2,383
Credit card minimum payment (estimate): $300
Living expenses (estimate): $2,000
Serviceability buffer (typical): $500

Financial Management for Self-Employed Individuals

Surplus and Maximum Repayment Capacity

After costs and buffers, Joseph’s estimated monthly surplus is ≈ $19,243. This surplus underpins his theoretical maximum borrowing capacity.

Estimated Borrowing Capacity

Method	Estimated Limit
Surplus-based capacity	≈ $2.89 million
Income-based cap (6× NOA)	$1.8 million

Note: Lenders often cap loans at 4–6× annual income for prudent assessment. Although surplus allows more, $1.8 M reflects a responsible lending cap.

Structure, Flexibility & SMSF Notes

Self-employed assessments: Some lenders use 1–2 years of NOA; recent policy trends allow a single strong year.
SMSF lending: Only superannuation balances and SMSF income count; borrowing power is typically lower and tightly regulated.
Final approval: Depends on lender policies, living costs, credit history, property type, and inclusion of partner’s assets/income.

Summary of Key Figures

Factor	Joseph (Solo Borrower)
2024 NOA Income	$300,000
Rental Income (80% load)	$2,427 / month
Borrowing Power Range	$1.8 M (capped) – $2.89 M (theoretical)

Recommendations

Expect most lenders to quote borrowing power between $1.8 M and $2.89 M.
Engage a mortgage broker or lender with full documentation and accurate living-expense data.
Factor in existing debt, realistic rental income, and personal risk appetite when deciding on a loan amount.

This estimate is based on mid-2025 lending criteria and the profile provided. Actual outcomes may vary; consult a specialist lender or broker for a tailored assessment.

Explore your potential with a professional assessment tailored to your financial standing and goals.