The $10,000 Credit Card That's Costing You $50,000 in Borrowing Power

A $10,000 credit card limit you have not touched in years can quietly wipe around $50,000 off your borrowing power, and it is the balance that matters least. In this episode, Michael pulls the curtain back on how banks actually calculate your borrowing capacity, then breaks down a brand new investor loan that has just changed the cash flow equation.🔔 Subscribe & leave a comment with your questions, we build episodes around what YOU want to know.General advice only and not personal advice. CRN 485467In this episode:The one number that decides almost everything about your property journeyWhat the assessment rate is and why banks test you roughly 3% above your actual rateWhy second and third tier lenders assess at 1% to 2%, and what that unlocksThe back of envelope rule for owner occupied borrowing capacityThe rule for investment borrowing capacity, and how rent factors inHow negative gearing changes have cut investor capacity by at least 10%The credit card trap costing borrowers five times their limitAMP's new Equity Flex loan, 40 year terms and up to 10 years interest onlyThe detail most people will misread about how it is actually assessedWhy interest only is a strategy tool, not a shortcutSubscribe: https://youtube.com/@ThatBackyardPropertyPodcastInstagram: https://instagram.com/backyardpropertypod?igsh=MWhkOWx5YzJxdDc3ag==Website: https://tuskfinance.com.auConnect with Michael: Facebook https://facebook.com/tuskfinancemk, Instagram https://instagram.com/mortgageswmichael, LinkedIn https://linkedin.com/in/michaelkilliner, TikTok https://tiktok.com/@backyardpropertypodcast, Tusk Finance: [email protected]:(00:00) The number that decides everything(01:10) What borrowing capacity actually is(01:20) The assessment rate and the 3% buffer(02:00) Rules of thumb you can run in ten seconds(02:15) Rule one: five times income for your own home(02:32) Rule two: six times combined income for an investment(02:50) How negative gearing changes cut capacity by 10%(03:05) Rule three: the silent capacity killer(03:40) Two old cards, $100,000 of capacity gone(04:10) AMP's new Equity Flex loan explained(04:48) The detail people will misread(05:37) Who this product is actually for(05:50) The interest only catch nobody mentions(06:18) The three takeaways(07:05) Assessment rate levers and the 1% bufferProduced by Podwave Studios: https://www.podwavestudios.au#BorrowingCapacity #PropertyInvesting #AustralianProperty #PerthProperty #MortgageBroker #HomeLoans #InvestmentProperty #InterestOnly #AMPBank #EquityFlex #NegativeGearing #PropertyInvestment #FirstHomeBuyer #LoanStructure #AssessmentRate #CreditCardDebt #PropertyPortfolio #TuskFinance #PropertyPodcast #ThatBackyardPropertyPod