Why do some banks lend more than others?

Banks differ in their serviceability formulas, expense benchmarks, DTI caps, rental income shading, overtime and bonus rules, and how they treat HECS and dependants. These differences can cause borrowing capacity to vary by $50,000 to over $200,000 for the same borrower across different Australian lenders.

How can I find the lender that gives me the highest borrowing capacity?

Matcheroo AI analyses multiple Australian lenders' borrowing power calculators, income policies and expense assumptions to highlight where your profile is assessed most favourably. This allows you to quickly identify which lender may offer the highest borrowing capacity without submitting multiple applications.

Which Australian Bank Gives the Highest Borrowing Power? (2025 Expert Guide)

Q: Which Australian bank gives the highest borrowing power?

No single Australian bank always gives the highest borrowing power. Borrowing capacity varies due to income shading rules, DTI limits, assessment rates, HECS treatment and expense assumptions. Some lenders accept more casual income, bonuses or rental income, leading to much higher borrowing estimates. Matcheroo AI compares these policies to identify which lenders may offer the highest borrowing power for your specific profile.

One of the most common questions Australian borrowers ask is: “Which bank will let me borrow the most?”
The truth is that no single bank always gives the highest borrowing power. Each Australian lender uses its own internal calculator, income rules, living-expense benchmarks and stress-test rates — which is why two banks can give you completely different borrowing capacity results for the exact same income and financial profile.

In 2025, borrowing power varies dramatically across major lenders due to different policies around overtime, bonuses, HECS, existing debt, dependants, DTI limits and assessment interest rates. This guide explains which lenders tend to offer higher borrowing limits, why borrowing power changes from bank to bank, and how Matcheroo AI helps identify the lender most likely to give you the highest borrowing capacity based on your individual situation.

Why Borrowing Power Differs Across Australian Banks

Australian banks do not follow a universal formula. Each lender has its own:

Income acceptance rules
Expense assumptions
HECS treatment
Credit score thresholds
DTI (Debt-To-Income) caps
Rental income shading
Overtime and bonus rules
Casual income requirements
Employment stability rules
Assessment interest rate

This is why one bank in Sydney might offer you $540k, another $620k, and another $700k+ — all from the exact same application.

These differences appear across all major Australian cities including Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra, and regional areas.

Banks That Tend to Offer Higher Borrowing Power in 2025

While no bank always gives the highest borrowing power, some lenders generally assess borrowers more generously depending on the scenario.

Here are the patterns across Australia:

Banks That Often Offer Higher Borrowing Power (Scenario-Based)

1. Lenders with Higher DTI Limits

Some Australian banks allow Debt-to-Income ratios above 6.0, while others cap at 6.0 or lower.
Higher DTI = higher potential borrowing capacity.

Borrowers in high-cost areas like Sydney’s Eastern Suburbs, Melbourne’s Inner East, Brisbane’s Northside and Perth’s Western Suburbs often benefit most from these lenders.

2. Lenders That Accept More Casual, Overtime & Bonus Income

Some banks accept:

100% casual income after a short history
Overtime income with minimal shading
Bonus/commission income averaged over 6 months instead of 24

This can dramatically increase borrowing capacity for workers in:

Healthcare
Trades
Construction
Mining
Retail
Hospitality
Emergency services
Shift-based industries

3. Lenders More Flexible With HECS/HELP

HECS significantly affects borrowing power, especially for first-home buyers in NSW, VIC and QLD.

Some lenders apply lower HECS deductions, increasing borrowing power by:

$20,000 to $60,000 in some cases
Even more for high-income borrowers

4. Lenders With Lower Expense Assumptions

Certain banks apply more moderate living-expense benchmarks, especially for:

Singles
Couples without dependants
High-income earners

Lower assumed expenses = higher borrowing power.

5. Banks That Shade Rental Income Less

Investors in Sydney, Melbourne, Brisbane and Perth often see higher borrowing power with lenders who accept:

90% of rental income
Add-backs for negative gearing
Lower vacancy rate assumptions

This can increase borrowing capacity by tens of thousands.

Banks That Often Give Lower Borrowing Power

Some banks have conservative rules, such as:

Lower DTI caps (5 or 6)
Higher assessment interest rates
Higher living-expense benchmarks
Stricter credit score requirements
Conservative treatment of casual or probation income

Your borrowing power may drop by $50k–$150k purely because of internal policy.

Example: How Much Borrowing Power Can Vary Between Banks

These are realistic patterns across Australian lenders:

Example 1: Casual Worker (NSW)

Bank A accepts 70% of income → $480k borrowing
Bank B accepts 100% of income → $610k borrowing
Difference: $130,000

Example 2: Borrower With HECS Debt (VIC)

Bank A uses higher HECS deduction → $520k borrowing
Bank B uses lower HECS deduction → $580k borrowing
Difference: $60,000

Example 3: Investor With Rent (QLD)

Bank A shades rent at 70% → lower borrowing
Bank B shades rent at 90% → significantly higher borrowing

Example 4: Family With Dependants (WA / SA)

Two banks may use very different HEM assumptions, changing borrowing capacity by $40k–$100k.

Which Bank Will Give You the Highest Borrowing Power?

Because every Australian borrower has a unique mix of:

Income sources
Credit profile
HECS
Employment type
Existing debts
Dependants
Expenses
Location

…it is impossible for one specific bank to always provide the best borrowing capacity.

The best lender for a high-income salaried worker in Sydney is not the same lender that works best for:

A self-employed borrower in Melbourne
A casual worker in Brisbane
A first-home buyer in Perth
A family with children in Adelaide
An investor with rent in regional NSW
A graduate with HECS in Victoria

The bank that gives the highest borrowing power depends entirely on your scenario.

This is exactly why Matcheroo AI exists.

How Matcheroo AI Finds the Lender With the Highest Borrowing Power

Matcheroo AI does not simply compare interest rates.

It analyses lending policy differences that impact borrowing capacity the most.

Matcheroo AI evaluates:

Income shading differences
Overtime/bonus acceptance rules
HECS treatment
Living-expense models
DTI caps
Assessment rate differences
Rental income shading
Employment type restrictions
Debt add-backs
Dependant scaling
Credit profile thresholds

By comparing these factors across multiple lenders, Matcheroo AI identifies where your specific profile is likely to achieve the highest borrowing limit.

Australians often discover they can borrow $50k–$180k more simply by choosing a lender whose calculator suits their profile — not because their financial situation changed.

How Australians Can Increase Their Borrowing Power

Borrowers across Australia often increase capacity by:

Reducing credit card limits
Paying down car loans
Improving savings history
Removing Buy Now Pay Later accounts
Waiting until probation ends
Strengthening employment stability
Reducing discretionary spending
Using Matcheroo AI to compare lenders

These steps directly impact borrowing power in 2025.

Summary: Which Australian Bank Gives the Highest Borrowing Power?

There is no single bank that always lends the most. Borrowing power varies significantly between Australian lenders due to different rules around income, expenses, HECS, debts, dependants, DTI, rental income and assessment rates.

Borrowers in Sydney, Melbourne, Brisbane, Perth, Adelaide and regional Australia can see differences of more than $200,000 between banks — simply because of how each lender’s calculator works.

Matcheroo AI helps Australians identify the lender most likely to offer the highest borrowing power based on their exact profile, without completing multiple applications.

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