Julian Finch is urging Gen Z to get into property before a nice car
Announcement posted by Invigorate PR 03 Sep 2025
Julian Finch, also known as Australia's Money Man, is urging Gen Zs, the next wave of property owners, to avoid taking out a loan to buy a car before buying a home.
For many Australians, the dream of home ownership feels just within reach until they make one simple mistake: buying a new car first. According to Julian Finch taking out a car loan before applying for a mortgage is one of the biggest errors people make when preparing to buy a home.
"Car loans are toxic for borrowing power," Finch said.
"Every dollar you owe on a depreciating asset like a car reduces how much a bank is willing to lend you for a property. It can be the difference between getting the home you want or missing out completely."
Julian Finch is the founder and CEO of Finch Financial. With decades of mortgage brokerage and commercial lending experience, Finch has helped thousands of Australians successfully navigate the lending process. Finch Financial has one of the highest loan approval rates in the country, often securing approvals within minutes. Considered the Money Man, Julian Finch has helped many people get into the best-fit home loans fast and with minimal effort so they can buy their dream home or ideal investment property.
Why car loans slash your borrowing power
Banks calculate your ability to repay based on all existing debts. A car loan, even a modest one, adds hundreds of dollars to your monthly commitments. That figure is deducted from what you could otherwise afford in mortgage repayments, dramatically reducing your borrowing capacity.
"We've seen clients lose as much as $150,000 in home loan approval capacity simply because they financed a car first," Finch explained.
"It's devastating to watch someone price themselves out of the property market for the sake of a car that will only lose value."
Cars depreciate, houses appreciate
Finch stressed that cars and houses could not be more different as financial assets.
"A car is a liability, it loses value from the moment you drive it out of the dealership. A house is an appreciating asset that builds equity and wealth over time. If you have to choose between the two, the house should always come first," he said.
"Having said this, if you don't plan on buying a property for at least five years, then getting a loan to buy a car may be OK, but you need to ensure the car loan is paid off before your apply for the home loan."
The hidden cost of running a car
Beyond loan repayments, cars also come with insurance, registration, fuel and maintenance, ongoing costs that banks consider when assessing financial commitments.
"It's not just the loan that hurts you. It's the total cost of ownership. All of it chips away at your borrowing power," Finch said.
The smarter strategy
Finch advised Australians to delay purchasing a new car until after securing a home loan.
"If your dream is to own a home, prioritise that above everything else. Secure the property first, then worry about the car. Don't let impatience for something shiny on four wheels cost you the biggest financial opportunity of your life.
"If you have to buy a car, buy something cheap yet reliable and pay with cash. This way the car is viewed as an asset by the bank, not a liability."
Finch added that if you don't have plans to buy a home for up to five years then a car loan can work for you as you can keep your cash and become accustomed to a monthly instalment. However if you do wait until after you have bought the property, you will likely see a cheaper interest rate on the car loan as the finance providers consider you a better risk than those that rent or live at home!
About Finch Financial Services
Based in Hurstville, NSW, Finch Financial Services has been servicing Australian families and businesses with home, personal and commercial loans as well as asset finance services since 2015. Ranked amongst the top five percent of brokerages in Australia according to data from the MFAA, Finch Financial Services is a leading brokerage and family-owned business that specialises in finding its customers loans that are tailored to their needs and goals.