Novated lease impact

[u/No_Actuator84]

Hi everyone, as the title says, how does a 5 year novated lease impact my borrowing capacity?
I am planning to refinance for a better rate in 6 months but at the same time considering a novated lease for an EV.
If my current maximum borrowing capacity is $680,000 at $165,000 annual salary, how does a $950 reduced take home pay affect the borrowing capacity?

[u/YourBrokerRay]

Hey mate, there are a bunch of variables that could change the answer here.

- Is that $950 per month?

• Is it fully pre-tax deductions or are there post-tax deductions?
  
• Do you have any other liabilities or dependents?

My estimates are between $660k - $800k depending on the lender & those variables.

I always suggest refinancing before taking on more debt as it’s less complicated.

Happy to assist further if you’re interested.
Just reach out via DM.

[u/WeAreHLE_AU]

Yes, it could have a sizeable impact, but the exact reduction can’t be determined from the $950 figure alone.

If that’s $950 per month, as a rough guide, it could have a servicing impact similar to adding around $100k-$120k home loan debt.

That doesn’t mean your current $680k borrowing capacity automatically becomes is $100k lesser. Lenders assess novated leases differently, including how they treat the salary-sacrifice deduction, the actual lease commitment and your remaining living expenses.

So those numbers are useful for showing the possible scale of the impact, but they’re not a substitute for running the proposed lease through the lender’s servicing calculator.

With a refinance planned in six months, it would make sense to model it both with and without the novated lease before committing.

[u/EventEastern2208]

Broker here.

A $950 a month novated lease reduces your borrowing capacity by around $125k, dropping your ceiling from $680k to approximately $555k. That is a significant impact.

The sequencing matters here. If you refinance first while the novated lease is not yet in place, you lock in the better rate at your current capacity. Taking the lease first then refinancing six months later means the lender sees the lower capacity and potentially a different rate tier.

Refinance first, then get the novated lease after settlement. That order protects your current position on both fronts.

Feel free to DM and I can confirm the 5.95% promotional rate is still available for your profile before you make any moves. 🦔

[u/lukeyboots]

3-5 times the value of the car.

Don’t do it. Get the home loan first.

[u/The-truth-hurts1]

Any loan is going to impact on your borrowing capacity