How much can I borrow?

New ‘secret shopper’ research reveals what each big bank is prepared to lend – and the answers will SHOCK you.

In fact, the differences right now between what the big banks will the lend the exact same owner-occupier home loan applicant is huge – as much as 27 per cent. And that translates to more than  one hundred thousand dollars.

Macquarie Securities sent ‘secret shadow shoppers’ to apply for first home buyer home loans and investor home loans from each of the four big Aussie banks – Commonwealth Bank, Westpac, National Australia Bank (NAB) and ANZ Bank.

The shoppers all told the banks they had the same income, expenses and life situations:

Income: $105,000 per year,
Rent: $1300 a month
General living expenses: $1200 a month
No personal loans or leases.
Credit card – $11,000 limit.

When the shopper applied for a first homebuyer loan, the banks offered loan amounts that varied by up to $138,000.

When the shopper applied for an investor loan, the loan amounts offered by the big banks varied by a whopping $276,000!

How much will the big four banks lend to a single person with no dependents?

The answer is the banks will offer very different loan amounts to the same applicant. Macquarie Securities’ research found that a single person with no dependents looking for an owner-occupied first homebuyer home loan is likely to be offered a $561,000 loan by ANZ Bank, $669,000 by Westpac, $695,000 by Commonwealth Bank and $699,000 by NAB.

The average home loan size offered by lenders surveyed by Macquarie was $651,000.

When the secret shadow shopper applied for an investor home loan, ANZ offered them a loan worth $613,000, Commonwealth Bank $780,000, NAB $840,000 and Westpac $889,000.

The average investor loan offered was $790,000.

ANZ Bank
ANZ Bank offered the lowest loan amounts to the shadow shopper of all the big four banks.
first home buyer owner occupier loan = $561,000
first investor loan = $613,000

Westpac was conservative with the owner-occupier but the most generous lender for the investor
first home buyer owner occupier loan = $669,000
first investor loan = $889,000

NAB was the most ‘generous’ lender for the owner-occupier.
first home buyer owner occupier loan = $699,000
first investor loan = $840,000

Commonwealth Bank
first home buyer owner occupier loan = $695,000
first investor loan = $780,000

Find out how much you might be able to afford to borrow to buy a home and calculate your own borrowing power with the InfoChoice borrowing power calculator.

Compare the top home loan products from Australia’s banks, credit unions, building societies and non-bank lenders at InfoChoice.

The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. If you or someone you know is in financial stress, contact the National Debt Helpline on 1800 007 007.

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