Every December, without fail, two things happen.
Mariah Carey defrosts.
We all realise we have accidentally subscribed to fourteen different streaming platforms and are still paying for that gym membership we visited twice.
So this year, I thought I would have a bit of fun and share Santa’s Naughty and Nice List, Mortgage Edition.
A playful way to check your financial habits before we hit 2026.No judgement. Just awareness, a wink, and maybe a nudge toward better borrowing power.
Let’s dive in.
🎁 The Naughty List
Also known as the stuff quietly sabotaging your borrowing power even if you are doing everything else right.
-
Keeping a high credit card limit “just in case”
A $10,000 limit, even unused, can reduce your borrowing capacity by $50,000 – $80,000 with many lenders.
Yes, seriously.
-
Treating BNPL like it is not real debtAfterpay, Zip and Klarna are all counted by lenders.
They can reduce your borrowing capacity by five thousand to twenty thousand dollars or more.
-
Opening multiple credit cards just for rewards
To lenders, this appears as multiple unsecured debts rather than a clever points strategy.
-
Changing jobs or shifts without keeping clean records
Missing or unclear income documentation can cost you fifty thousand to one hundred thousand dollars or more in borrowing power.
This one stings because it is so avoidable.
-
Ignoring your monthly subscriptions
Streaming services, gyms, apps and meal kits are all treated as ongoing expenses by lenders, which lowers your borrowing power.
-
Withdrawing cash from your credit card
Cash advances are one of the biggest red flags on a credit report. This can significantly reduce your borrowing power or lead to an outright decline.
🎄 The Nice List
Simple habits that make lenders smile and help your future self.
-
Paying your credit card off in full each month
A simple habit that pays off.
-
Reducing your credit limit to what you actually use
This can instantly boost your borrowing capacity.
-
Clearing small debts before applying
Clearing BNPL or credit card balances tidies up your profile quickly.
-
Maintaining stable employment for six to twelve months
Stability gives lenders confidence in your income.
-
Keeping your documents organised
Payslips, contracts, rosters and bank statements are much easier to manage when you store them properly.
-
Checking your credit score once or twice per year
No surprises usually means smoother approvals.
You do not need to be perfect, just aware. Most people do not realise how small habits can have big financial consequences, especially when it comes to borrowing power. The good news is that nearly everything on the Naughty List is fixable with a few small changes.
If you want to know where you currently sit, Naughty, Nice or “Needs Improvement” I am offering a free festive borrowing power check-in.
Nothing heavy.
No spreadsheets.
Just clarity heading into the new year.
