How Much Can David and His Wife Borrow? A 2025 Mortgage Analysis

David and his wife, both property owners based in Perth, are exploring their borrowing capacity under current lender rules. Balancing diverse income streams, existing debts and home equity, this case study breaks down the factors influencing how much they could borrow in 2025.

Step 1: Financial Overview

Annual and Monthly Income

David (Uber driver): $55,000 gross
Spouse (disability carer): $120,000 gross
Total combined gross: $175,000
Net monthly income: approx. $9,922

Monthly Outgoings

Owner-occupied mortgage: $6,300
Car finance: $1,560
Credit card minimums: $900
Living costs estimate: $3,500
Total expenses: $12,260/month

Assets & Liabilities

Owner-occupied home valued at $1.5 M (loan balance $290K)
Investment property valued at $670K (loan balance $640K)
Savings: $70K
Superannuation: $130K (not counted)
Total debt: $1.035 M
Combined equity: $1.24 M

Step 2: Serviceability & Borrowing Capacity

Lenders focus on your Net Income Surplus (income minus expenses). Under current figures, David and his wife show a monthly shortfall of $2,338, meaning they cannot borrow more without adjustments.

If their investment property yields rental cashflow (approximately $2,010 net per month after buffers), the deficit narrows to $328.

By using $30,000 of their savings to clear credit card debt, their outgoings drop and they achieve a monthly surplus of $572. At a 9% assessment rate, this supports roughly $80,000 in additional borrowing.

Final Estimate & Key Takeaways

Additional borrowing potential: ~$80,000 (after debt reduction)
Main hurdle: Serviceability, not equity
High debt-to-income ratio limits capacity

Recommendations

Eliminate high-interest credit card balances
Increase income (e.g. consulting or side gigs)
Provide actual rental statements to the lender
Consider refinancing to reduce monthly repayments

By actively managing liabilities and boosting net cashflow, borrowers can significantly improve their borrowing power. For personalised guidance tailored to your situation, visit Talk to our finance experts.

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