Why Credit Policy and Lender Strategy Matter More Than Interest Rate Alone
When Steve Hair sat down with us, he'd already lived through every kind of market — he started on the Sydney Futures Exchange at seventeen and spent decades in banking across Sydney, London and Singapore. So when even he says the thing that changed his property journey wasn't the interest rate, it's worth leaning in.
Most buyers obsess over the rate and assume a healthy salary means an easy yes. But banks don't lend against the rate you'll actually pay — they stress-test you as if it were about 3% higher. And if a chunk of your income is bonus or commission, many big banks count only half of it. An illustrative example (using hypothetical figures, not Steve's actual numbers) shows what that costs: a Sydney professional on a $250k salary plus a $150k bonus, after a $2.5M home, was capped at $1.4M by his own bank — $600k short — purely because of how that bank treated his pay.
The fix wasn't a better rate. It was a better-matched lender — one that counted the full bonus and tested it more fairly — which lifted his borrowing power to $2.1M and got the deal done. That's the whole point of the show: the lender you choose, and the order you approach them in, quietly decides what's possible. Same person, same income — completely different outcome.
At a Glance
This episode features Steve Hair (Veteran Banker & SFE Futures Trader) in an honest, plain-English conversation about how property and lending really work in Australia. It's the kind of behind-the-scenes detail that helps you understand your options — and the questions worth asking — before you talk to a bank.
- Guest: Steve Hair
- Primary Category: Lenders Actually Assess
- Duration: 26 min
Listen or Watch the Conversation
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Why This Episode Matters
Most property advice stops at the interest rate. The real story is everything else — how lenders, lawyers and the market actually make their decisions. This episode digs into the practical detail that tends to catch people out, so you're not learning it the hard way.
That the headline number isn't the whole story. How your income, your structure and the property itself are assessed can completely change the answer you get.
Sorting out your finances and structure before you commit means fewer nasty surprises — and a much better chance of settling smoothly and on time.
Who This Episode Is For
Steve Hair — Veteran Banker & SFE Futures Trader
Steve Hair began his finance journey on the Sydney Futures Exchange and built a decades-long global banking career, navigating the GFC, Brexit, and major macroeconomic credit squeezes.
Gold Nuggets From The Episode
Gold Nugget 1: The interest rate isn't what decides your loan
"Most people focus almost entirely on the interest rate when they go for a mortgage."
But how the bank stress-tests your repayments matters far more for how much you can actually borrow than the rate itself.
By law, banks check whether you could still afford the loan at about 3% above your actual rate — so a 6% loan is tested at 9%. That changes the numbers dramatically.
Gold Nugget 2: The bonus and commission trap
"Big banks often count only 50–80% of your bonus or commission income."
They treat that income as 'risky' because it varies — which quietly punishes high earners who rely on it.
Some specialist lenders will count 100% of it, as long as you can show a steady two-year history.
Key Lending & Property Insights
Right now, banks have to check you could still afford repayments if your interest rate rose by about 3%.
Banks often use a standard estimate of your living costs — not your actual spending — when that estimate is higher.
Your base salary is counted in full, but bonuses and company dividends are often heavily discounted.
Choosing a lender whose rules suit your situation can lift your borrowing power by 20–40%.
Borrower Situations Addressed
How Lenders May Look At This
Educational Assessment Guidelines
- Big banks tend to run your application through an automated scoring system.
- Smaller and specialist lenders are more likely to have a real person review the detail — like company tax returns or irregular income.
What Borrowers Often Miss
Important Credit Realities
- A pre-approval isn't a final yes — the loan still depends on the property valuing up.
- Having equity in other properties doesn't automatically mean you can borrow more — you still have to pass the income test.
How the right lender unlocked a $2.5M purchase
Real-World Case StudyA Sydney professional earning a $250k base salary plus a $150k bonus wanted to buy a $2.5M home.
Their big bank counted only half the bonus and applied the full 3% buffer — capping them at $1.4M, about $600k short.
A specialist lender that counted 100% of the bonus (backed by a two-year history) and used a smaller buffer lifted their borrowing power to $2.1M.
Approved for the full purchase — with room to move.
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Credit & Legal Compliance Statement
Property & Mortgage Insights Australia (PMIA) publishes episodes and analyses as general observational and educational guides only. Nothing contained on this page or in the associated audio/video recordings constitutes personal financial advice, legal counsel, or personal tax advice. All numerical examples are anonymised case studies compiled for structural reference only. For specific lending advice tailored to your personal portfolio goals, secure an authorized personal consultation with an accredited finance broker.