Find out how lenders consider this popular car financing option and what it may mean for your home loan goals.
Considering a novated lease but worried about how it might affect your ability to get a home loan? It's a common question. Understanding how lenders view these arrangements is key to planning your financial future.
Let's explore how a novated lease might influence your borrowing power.
When you apply for a loan, lenders conduct a thorough assessment of your financial situation to determine your borrowing power. This review will generally include your income, savings, what you spend money on and any existing financial commitments. A novated lease is considered one of these commitments.
This isn't unique to novated leases. Lenders look at all your regular expenses and commitments, whether it's a credit card, a personal loan, or even a gym membership. Any recurring expense can impact the final loan amount you may borrow. Your novated lease payments are simply factored into your overall financial profile.
The exact effect of a novated lease on your borrowing power isn't a one-size-fits-all answer. It depends entirely on your individual circumstances. Factors like your total income, type of employment, the size of your deposit, your credit score, and other existing debts all play a significant role. For some, the impact might be minimal, while for others with more financial commitments, it could be more noticeable.
A novated lease could also demonstrate a history of consistent payments, which may be viewed positively by a lender. The key is how this commitment fits into your broader financial picture.
The best way to understand the specific impact on your borrowing capacity is to be proactive. You have a couple of options:
By taking these steps, you can confidently decide if a novated lease is the right choice for you and whether it aligns to your other financial goals.
It is possible to realise your home ownership goals and still enjoy the potential benefits of a novated lease. By understanding how lenders assess your commitments and seeking expert advice, you can plan ahead and stay in control.
Want to explore your novated lease options? Smart is here to support you and help make the whole process seamless.
Important information
This is general information only. Before entering into any salary packaging or novated leasing arrangement, you should consider your objectives, financial situation and needs, and obtain appropriate legal, tax, financial, or other professional advice based upon your own particular circumstances. This information is current as at November 2025.
* Smart may receive commission and/or administrative fees from Finspo, (as the case may be), in respect of any transactions that result from the referral. The personal meeting mortgage health check is offered by Lab35 Pty Ltd ABN 34 637 821 928 trading as Finspo, Australian Credit Licence Number 521120. Any personal information provided to Finspo as part of the Mortgage Health Check will be held, stored and used in accordance with the Finspo Privacy Policy.
