Lenders have to look at what you really spend
Under New Zealand's responsible-lending rules, a lender has to satisfy itself that you can meet the repayments without hardship. That means looking at your real living expenses, not an optimistic estimate.
They will typically review recent bank statements and compare what they see against benchmark costs for a household like yours. If your spending is higher than the benchmark, the higher figure is usually the one they use.
Higher spending means a smaller loan
The maths is simple. Income minus tax, minus existing commitments, minus living costs leaves a surplus. The loan is sized so the tested repayments fit inside that surplus.
Trim ongoing costs and the surplus grows, which lifts the loan. Add costs and the surplus shrinks, which pulls the loan down — usually by far more than the monthly amount you added.
Unused credit limits still count
A credit card limit is treated as money you could owe tomorrow. Lenders assume a repayment based on the limit, even if you clear the card in full every month and pay no interest.
The same logic applies to overdrafts and revolving facilities. Dropping a limit you never use is one of the quickest ways to improve your position before you apply.
Same pay, different outcomes
Two people on identical salaries can end up a long way apart: one with modest spending and no cards, the other with high living costs, a car loan and a large unused card limit.
That comparison is illustrative, but the pattern is real. It is also encouraging — the parts you can change quickly are usually on the spending side, not the income side.
Where to from here
Put your actual numbers in and see the effect for yourself. The report shows what is holding your borrowing figure down, so you know where cleaning things up would help most.