How to Get a Bigger Home Loan Without Increasing Your Deposit

You’ve done the hard yards. You’ve saved the deposit, narrowed down your dream block of land or home, and you’re ready to buy. But then, the bank turns around and says “Sorry, you haven’t saved enough.” For many first home buyers, this moment can feel like hitting a brick wall. You’ve been budgeting carefully, taking on extra shifts, watching property prices edge upward and still, the goalposts move. Here’s what most banks won’t tell you: Your borrowing power isn’t fixed. It’s influenced by far more than your income and deposit size. In fact, with the right structure and guidance, you may be able to increase your borrowing capacity significantly without changing jobs, earning more, or saving another cent.

At I Know The Broker, this is what we do every day. We help smart buyers get strategic. That means making the most of their deposit, restructuring liabilities, and pairing them with lenders whose policies actually work in their favour.

Let’s walk through a real example of how we helped a young couple increase their borrowing power by more than $170,000, without changing their income or employment.

Real Client Story: Dave and Melanie’s First Home Journey

Dave and Melanie were typical first home buyers: financially responsible, future-focused, and ready to build their first property in a regional growth area near the Sunshine Coast.

Here’s a snapshot of their situation:

• Melanie: $80,000 annual income

• Dave: $60,000 annual income

• Deposit saved: $50,000

• Eligible regional First Home Buyer Grant: $30,000

• Liabilities: $15,000 car loan, $20,000 HECS-HELP debt (Melanie) $2,000 credit card limit

Their combined income was solid. With the grant and their savings, they felt confident. But their current bank would only approve a loan just over $500,000, more than $130,000 short of what they needed to purchase land and build the home they wanted.

Their options? Scale back their plans or walk away. That’s when they contacted us for a second opinion.

The Strategy: How We Boosted Their Borrowing Capacity by $170,000+

The key to increasing Dave and Melanie’s borrowing capacity wasn’t about adding income. It was about removing the right barriers.

1. We Used Their Deposit More Strategically

Most first home buyers assume that the larger the deposit, the better. While that’s true in many cases, there are scenarios like Dave and Melanie’s, where using part of the deposit to reduce debt can lead to a far better outcome overall.

We advised them to allocate a portion of their $50,000 deposit toward clearing:

• The $15,000 car loan

• The $20,000 HECS-HELP debt

By eliminating these ongoing liabilities, their net income on paper increased significantly. With fewer monthly repayments eating into their serviceability, they suddenly looked far more attractive to lenders. Importantly, this didn’t wipe out their deposit entirely, they still had enough (combined with the grant) to meet the lender’s minimum deposit requirements.

2. We Matched Them With a Lender Who Saw the Full Picture

Their current bank had taken a conservative stance. They factored in the debts, took a cautious view of Melanie’s income based on her employment type, and applied tighter servicing restrictions due to their dependants.

We knew which lenders on our panel assessed income more generously and were comfortable ignoring paid-out debts after settlement. That meant once Dave and Melanie used their funds to clear the car and HECS debts, the new lender didn’t penalise them for those former liabilities at all. Even better? This lender offered them a more competitive interest rate than their original bank, lowering their projected repayments.

The result:

• Original bank: capped their borrowing at $500,000, then only increased to $630,000 even after the debts were cleared

• Our matched lender: approved $665,000, giving them a full green light to build their first home

All without changing jobs. All without saving a dollar more.

What This Means for You

If you’re struggling to borrow enough even after saving diligently, you’re not alone. Many first home buyers are closer to their goal than they think. The key is understanding what’s really driving your borrowing capacity and how to optimise it.

Here are a few things that could make a huge difference:

1. Pay Down the Right Debts First

Small repayments from personal loans, HECS, or even low-limit credit cards can have a big impact on serviceability. By clearing the right debts first, especially those with high minimum monthly repayments, you may dramatically increase how much a lender will let you borrow.

2. Rethink How You Use Your Deposit

Putting every dollar into your deposit isn’t always the most effective move. In some cases, using a portion of your funds to reduce liabilities first can yield far greater borrowing outcomes.

3. Choose the Right Lender for Your Situation

Every lender has a different view on how they assess income, debt, and living expenses. What one bank considers a “no,” another may see as perfectly acceptable. Working with a broker who knows these policies inside and out can mean the difference between buying now or missing out.

4. Get Expert Guidance Early

It’s never too early to speak with a mortgage broker. Even before you’ve found a property, we can help you prepare strategically and get pre-qualified properly, so you know exactly where you stand and how to move forward confidently.

Don’t Take One “No” as the Final Word

Dave and Melanie were ready to give up until they realised the issue wasn’t with their financial position, it was with how it was being presented. One conversation changed everything. 

At I Know The Broker, we do more than just submit applications. We take the time to understand your goals, assess the finer details of your financial profile, and match you with lenders who want to say yes. Whether you’re a first home buyer, an upgrader, or somewhere in between, we can help you stretch your potential further, strategically and responsibly. So if a bank has told you “you can’t borrow enough,” don’t stop there. Get a second opinion. Because like Dave and Melanie, you might already have everything you need, you just need someone to help you use it better.