Investors·8 August 2026·1 min read
The serviceability gap between lenders is bigger than you think
Two lenders, the same file, a $300,000 difference in maximum borrowings. Here's why.
Every lender applies an assessment rate buffer above the actual rate, shades rental income, and loads existing debts using their own assumptions.
One lender might shade rent at 80% and assess existing investment debt at the actual repayment. Another might shade at 70% and assess all external debt at a much higher notional rate.
For investors this matters most at the third and fourth purchase, where existing debt dominates the calculation.
It's also why a decline from your own bank tells you very little about your actual borrowing capacity.
General information only. This article does not take your personal circumstances into account and does not constitute credit advice.