Could your credit card cost you an extra bedroom or force you to change suburb?

Your credit card could cost you $80,000 or a change of suburb

Credit cards impact on your borrowing capacity I Two Red Shoes mortgage broker sydney

In testing what a lender feels you can afford to borrow for your home, lenders look at many factors which include your existing commitments. This also includes assuming you could go tomorrow and blow the whole limit of your credit card then have to pay it back at the same time as your mortgage.

Most of use use cards as a brilliant tool to avoid carrying cash and collect points, hand in hand with keeping your money in your offset account & we do it very effectively (but they can feel a bit unreal and you could overspend, so be mindful) but bigger issue is if you have a very large limit.

On average (and I say average because the rule varies) lenders take 3% of the credit card LIMIT (not balance, not what you actually spend on the card, the potential) as a monthly commitment.