How Sally Can Secure a $650,000 Home

Sally is a self-employed tutor whose annual income rose from $60,000 in 2024 to $120,000 in 2025. As a single parent with one child, she currently holds a $420,000 mortgage on a property valued at $930,000. She also carries a $20,000 ATO debt and has $15,000 in savings.

Current Financial Snapshot

Average Assessable Income: ~$90,000 over two years, likely reduced by lenders to ~$72,000
Annual Expenses: ~$63,400 (mortgage repayments, ATO payments, living costs)
Estimated Borrowing Capacity: $200,000–$300,000
Required Loan Size: Approximately $520,000 to purchase a $650,000 property

Top 5 Strategies to Increase Borrowing Power

Eliminate ATO Debt
By paying $1,000 per month, Sally can clear her $20,000 tax debt in under two years. Reducing this liability will improve her serviceability and demonstrate fiscal responsibility to lenders.
Leverage Home Equity
With around $510,000 in equity, Sally can refinance her existing loan to extract $100,000. This additional cash can cover a deposit and any lender’s mortgage insurance (LMI).
Stabilise and Grow Your Income
Maintaining or increasing her $120,000 earnings into 2026 will strengthen her application. Providing detailed business financials and BAS statements can further reassure lenders of her income stability.
Commit to Regular Savings
If Sally saves $1,500–$2,000 per month, she can accumulate the required $65,000 deposit within 2.5 to 3 years, reducing her reliance on LMI and improving her loan-to-value ratio.
Engage a Specialist Mortgage Broker
A broker with expertise in self-employed lending can identify lenders with flexible policies, structure her application around equity and income growth, and negotiate competitive rates.

Conclusion

By systematically clearing debt, tapping into equity, boosting income, and saving consistently—backed by professional advice—Sally can position herself to purchase a $650,000 property within 12–24 months.

Talk to a mortgage strategist today and turn your home-buying aspirations into reality.