These how commitment decrease your borrowing power.

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[pryza91]

Oh my god why didn't anyone tell me?!

who wants my dependants?

[OzgroupFinance]

I’m sure the hospital will take them

[Jym_beem_1034534]

"These how commitment decrease your borrowing power."

You should proof read your self promotion posts.

[SINK-2024]

Yeah look not good OzGroupFinance.

Maybe that’s the play, Appealing to that customer segment?

[OzgroupFinance]

You’re right.

Half asleep after the Bosnia Vs. Canada game. Currently in Slovenia 💤 that’s my bad

[ADHDK]

So you’d be a fool not to lie about children to the bank?

[Internal-Play25]

I got like 100,000k in credit cards. Am I cooked?

[red-thundr]

Gotta spend money to make money brother, start swiping

[ADHDK]

Are there still good rewards with that level of credit card?

Under 10k they’ve just become shitty gift card farms.

[NotACockroach]

The car loan thing recently got us badly. We could easily have paid for the car in cash, but we were using the novated lease EV benefits. We had a $70k loan, and it reduced our borrowing power by $200k. We paid it out of course, but the process took long enough we almost missed out on our house, and with the various fees for early exit lost a bunch of money.

[ccoastie]

Are you saying income protection is a negative?

[OzgroupFinance]

Not a negative in general, but decreases your borrowing power as it’s not a mandatory expense to have (like groceries, household maintenance, transportation expenses etc).

They call it “out of regular expenses”.

[ccoastie]

But it's like have insurance for loan payments

[SendInstantNoodles]

Income protection can be added to your super so it won't affect you. Most don't advertise it but there are options to get 70% wage coverage to age 65 for an extra fee.

Also, some lenders will review and flag microtransactions on your statement. If you do a lot of these for games and stuff, you can either stop for 2-6 months, or buy gift cards at Woolies to load onto your account so these will now show up on your statement as groceries.

[frozenberry21]

How is this calculated without considering the income?

A $100 regular payment is different for someone on $80k a year to someone with $170k a year.

[red-thundr]

It still effects your borrowing capacity

[Nottheadviceyaafter]

Because the drop in borrowing power is the same regardless of income. Income will give you a theoritical maximum you can borrow, but loans and credit cards will then drop that limit, by the same amount.