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AutoCalc Academy

Module 8 of 8 · 5 min read

Putting it together

A checklist for reading any scenario: where the gap will come from, and why the highest number isn't always the answer.

You now know the five lines of the sum and where lenders pull them apart. Here are the five case studies side by side, from the narrowest spread to the widest.

BorrowerLowestHighestGapWhere the gap comes from
Single, $115k salary, $40k of unused card limits$392k$461k$69kCard limits; test rate
Nurse with regular overtime$608k$757k$149kOvertime shading; essential-worker policy; test rate
Sole trader with rising profit$704k$940k$236kWhich year's income
Couple, three children, family payments$464k$855k$391kLiving expenses; family payments
Couple buying a third investment property$171k$1.10M$930kExisting loans; rent; tax effects

The pattern is the point. A simple PAYG client with a clean balance sheet sees a modest spread, and lender choice is mostly about rate and service. The more the client departs from a base salary and a single home loan, the more each lender's policy matters, until on an investor deal the choice of lender can be the whole deal.

Reading a new scenario

Before you run any numbers, look at the client and predict where the gap will come from. Tick what applies and you get a short list of what to check.

Try it

Where will the gap come from?

The client has...
Check these first
  1. 1How much overtime or casual income each lender counts, and any essential-worker policy Review
  2. 2The share of the limit counted, and whether reducing limits first helps more than switching lender Review

Why the highest number isn't always the answer

  • Policy comes first. A lender's calculator may happily count income its credit policy won't accept: a job still on probation, a visa type, a short trading history.
  • Price. The most generous calculators often belong to lenders with higher rates or fees. Compare what the client will actually pay.
  • Deposit and insurance. Loan-to-value limits and lenders mortgage insurance can matter more than an extra $50,000 of capacity.
  • The client's interests. Your duty is to recommend a loan that suits the client, not the largest one available. Capacity tells you what's possible; the client's goals and comfort tell you what's right.

Takeaways

  • Simple PAYG clients see small spreads; complexity widens them.
  • Predict where the gap will come from before you run the numbers.
  • The highest borrowing figure still has to pass policy, price and suitability.
  • Policies change often: rely on current calculations, not memory.

Check your understanding

0 of 3 answered

  1. 1. Which client is likely to see the widest spread between lenders?

  2. 2. A lender's calculator gives the highest figure. What should you check before recommending it?

  3. 3. A client's case has overtime, two credit cards and three children. Where would you look first for the gap?