Credit card limits and your borrowing power
Last updated September 2026 · Back to the calculator · All guides
Lenders do not only look at what you owe. They look at what you could owe. A credit card with a $15,000 limit and a $0 balance still counts against you, because you could spend up to the limit tomorrow.
How lenders count a card limit
Lenders assume a repayment on the full limit, usually a small percentage of it every month, and take that off the income available to service your loan. The percentage differs by lender. A few cards with generous limits can cost you a noticeable amount of borrowing power, even if you pay them off in full every month.
Limits that count
- Credit cards, including ones you rarely use.
- Store cards and charge cards with a limit.
- Buy-now-pay-later limits, which many lenders now count as well.
- Limits you have not drawn on, such as a card you keep for emergencies.
What you can do before you apply
- List every card and limit you hold, including old ones you forgot about.
- Close cards you do not need. Cutting one up is not enough; the account has to be closed.
- Lower the limit on cards you keep to the smallest you actually use.
- Allow time. Changes take a while to show on your credit file, so do this before you apply, not during.
The rest of the picture
Card limits are one part of the commitments lenders add up, alongside HECS/HELP debt, car loans and your living expenses. See how much a first home buyer can borrow for the full list, then run an estimate across several lenders, because each treats card limits a little differently.
How a broker helps, at no cost to you
- Finds the right lender. Compares lenders across their panel to find which will lend you the most, including those taking part in the 5% Deposit Scheme and Help to Buy.
- Handles the scheme. Checks your eligibility and the price cap, and applies for your scheme place through the lender.
- Gets you ready to bid. Sorts the paperwork and a pre-approval before you make an offer.
Who pays? Most mortgage brokers charge you nothing. The lender you choose pays the broker a commission when your loan settles. By law a broker must act in your best interests, not the lender's. We may receive a referral fee from the broker; it does not change what you pay.
This page is general information only, not credit advice or a recommendation. Lender policies change; a licensed broker or lender can confirm what applies to you.