Picture this – you’re at school pick-up, watching the stream of families loading their kids into SUVs. There’s always that one parent who seems to have it all, the beautiful home, the beach holidays, the investment property… you name it. You might wonder, “How are they pulling this off? Are they secretly superheroes?” The answer isn’t magic – it’s good professional advice.
Let’s face it: private school fees are no joke. For many families, they’re a massive line item in the budget. If your household income is $400,000 and you’re paying $40,000 a year in school fees, it’s easy to see how this could reduce your borrowing power. In fact, we estimate that your borrowing capacity could drop from $2 million to $1.6 million—a staggering $400,000 difference. That’s the kind of drop that could take a holiday home, a long-overdue renovation, or your next investment property off the table.
But it doesn’t have to be this way. The good news? Some lenders understand that school fees aren’t a permanent expense. With the right planning, it’s possible to keep your borrowing power intact while giving your kids the education they deserve.
the smart approach to lending
Here’s the secret: a handful of lenders take a more pragmatic approach to school fees. If you have a clear plan in place and leave sufficient cash reserves to cover the costs, these lenders may not treat your school fees as a permanent drag on your borrowing capacity. In other words, they look at the bigger picture.
Why does this matter? Because school fees are temporary. They’re not a lifelong expense, and some lenders get that. Most, however, do not, which is why it’s essential to have the right mortgage broker in your corner.
why expert advice matters
At Yarra Lane, we know lending policies inside and out. We’re here to make the complex simple and help you achieve your financial goals, even when the path isn’t straightforward. Whether it’s navigating tricky lending policies or finding lenders who understand your unique situation, we’ve got your back.
Think back to that parent at school pick-up. Are they over-leveraged, living beyond their means, and heading for a financial trap? Maybe. But there’s a good chance they’ve simply sought out expert advice, created a plan, and worked with a mortgage broker who knows how to turn obstacles into opportunities.
a partner for life
Your financial journey is personal, and it doesn’t end with one loan. At Yarra Lane, we’re your partner for life. From navigating school fees to planning for renovations, holiday homes, or future investments, we’ll be with you every step of the way. Because we believe you shouldn’t have to choose between your family’s dreams and their education.
Ready to create a plan that works for you? Let’s make it happen.
about the author
This article is written by James Kelada, a senior mortgage broker at Yarra Lane with over a decade of experience in lending. As a family man with a wife and two young children, James deeply understands the financial challenges families face. Known for his expertise and trusted by professionals such as barristers and doctors, James has built a strong reputation for delivering tailored advice and helping clients achieve their financial goals with confidence.
This article provides general information only and does not take into account your personal circumstances, financial situation, or needs. It is not intended to provide personal credit advice. For tailored advice suited to your situation, please contact our office or speak with a qualified mortgage broker. Yarra Lane Finance Pty Ltd trading as Yarra Lane Finance operates under its own Australian Credit Licence 392272.