Don’t Let Christmas Spending Affect Your 2026 Home Buying Goals
The festive season is here — filled with celebrations, family, and yes, spending. While Christmas is a time to enjoy yourself, it can also create financial habits that impact your ability to secure a home loan in the new year.
Even small oversights now can affect your borrowing power when you’re ready to buy a home. Here are some common finance red flags to watch out for during the holiday season:
1. Missing Bills or Loan Repayments
It’s easy to get caught up in Christmas spending and forget a bill or loan payment. Lenders consider your repayment history when assessing your borrowing capacity, so staying on top of bills is essential.
2. Relying on Afterpay or Buy Now Pay Later Services
These services are convenient, but frequent use can signal to lenders that you’re relying on short-term credit. This can reduce the amount you’re able to borrow for a home.
3. Maxing Out Your Credit Card
Running up your credit card during the holidays may be tempting, but high credit card limits and balances can lower your borrowing power.
4. Taking Out Personal Loans to Cover Holiday Expenses
Extra borrowing in the lead-up to a home loan application increases your debt-to-income ratio, impacting the amount you can borrow.
How to Stay on Track
The good news is, Christmas spending doesn’t have to derail your home ownership plans. By being aware of these red flags, you can manage your finances responsibly over the holiday season. Simple steps like budgeting for gifts, tracking expenses, and maintaining repayments can make a big difference.
Planning for 2026
If buying a home next year is one of your goals, now is the perfect time to start preparing. Even small adjustments to your spending habits now can boost your borrowing power and ensure you’re ready to apply for pre-approval when the new year starts.
If you’re unsure where to begin, a quick chat can help you get organised and confident heading into 2026. Reach out today to make sure your home ownership dreams stay on track.
