Julian Finch: Your car is now your enemy when it comes to a home loan
Announcement posted by Invigorate PR 13 Mar 2026
Australians hoping to buy a home could see their borrowing capacity shrink as rising petrol prices begin to bite, with finance experts warning that the cost of driving is now playing a bigger role in how much banks are willing to lend.
According to Julian Finch, founder and CEO of Finch Financial, the recent surge in global tensions and conflict is pushing fuel prices higher and lenders are factoring those increased costs into household living expenses when assessing mortgage applications.
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.
"Fuel prices might seem like a small weekly expense, but when petrol rises sharply it can significantly affect how banks assess your financial position," Finch said.
"When lenders calculate borrowing capacity, they look closely at your ongoing living costs. If petrol prices spike and you're spending more on fuel every week, it reduces the income available to service a home loan."
War-driven fuel spikes hitting household budgets
Global conflict and instability in energy markets are already pushing up fuel prices and Finch said Australians are likely to feel the impact at the bowser and in their borrowing capacity, especially given that the RBA looks set to continue to hike rates again.
"When geopolitical events disrupt oil supply, the impact flows directly through to petrol prices," he said.
"For households that rely heavily on driving for work, school or daily life, those higher costs can add hundreds of dollars a month to their expenses.
"Tradies driving around in big utes that cost a lot to fill are going to be hardest hit.
Lenders factor in real living costs
Banks assess mortgage applications using detailed serviceability calculations that include a borrower's actual living expenses.
If fuel costs rise and appear consistently in bank statements, lenders may factor that spending into their affordability calculations.
"Lenders don't just look at income and deposits," Finch said.
"They analyse spending patterns and fuel is one of those expenses that can quickly increase when global events push up oil prices. Banks use a baseline figure called HEM (Household Expenditure Measurement) which is adjusted periodically. High inflation and an extended increase in fuel costs will absolutely impact this figure."
For borrowers commuting long distances or managing multiple vehicles, the effect can be even more pronounced.
Heavy commuters may feel the biggest impact
Finch said Australians living in outer suburbs and regional areas, where driving is essential, may be particularly exposed.
"People who commute long distances for work often spend far more on petrol than they realise," he said.
"When fuel prices jump, those costs can materially affect their borrowing capacity."
Even modest increases in weekly fuel spending can accumulate into a noticeable impact when lenders review monthly expenses.
Small changes can make a difference
Finch said borrowers who are planning to apply for a home loan should be aware that everyday spending patterns matter.
Reducing discretionary travel, consolidating trips or using public transport where possible may help lower recorded fuel costs in the months leading up to a loan application.
"It's not about eliminating petrol spending altogether," Finch said.
"Lenders are assessing your real financial behaviour, so even small reductions in regular expenses can help improve your borrowing profile."
Global events can affect household finance
Finch said the current environment highlights how international events can have unexpected consequences for Australian borrowers.
"Most people don't think about global conflicts affecting their home loan," he said.
"However, when those events push up fuel prices, they can quietly influence household budgets and borrowing power."
Finch urged borrowers to use public transport a few days a week as it might be a budget saver.
"Rates are now almost certain to increase even higher than they were 12 months ago and likely more than two additional increases after the first one back in February this year," he added.
"Inflation has been hovering around 3.4-3.8 percent depending on headline vs underlying figures but is now more than likely to have a four in front of it and that is before the full toll of the middle east war has been included."
With interest rates still elevated and likely to keep climbing and lenders maintaining strict serviceability tests, Finch said Australians planning to enter the property market should consider all aspects of their spending.
"Every dollar of recurring expense counts when a bank is assessing your ability to repay a loan," he said.
"Right now, petrol is one cost that could be rising faster than people expect."
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.