If you have joint debts with a partner or co-borrower, you may be surprised to learn that most lenders traditionally count 100% of that shared debt against you alone — even when your partner is equally responsible for repayments. The good news is that St George Bank has a powerful policy tool that can change this calculation entirely.
What Is the Apportioning Policy (Common Debt Reducer)?
St George Bank offers two specific policy options under its Serviceability Assessment (Policy 03.17) that allow your borrowing capacity to be assessed on your proportionate share of shared financial obligations:
Option 1 — Apportioning Spousal Household Expenses AND Common Debts (Policy 2.5.1)
This option is for couples where both incomes are in play. Your serviceability is assessed using your apportioned share of:
- Household living expenses
- Repayments for any existing joint debts or liabilities
The result? A more accurate picture of what you can genuinely afford.
Option 2 — Apportioning Common Debts Only (Policy 2.5.2)
This option focuses purely on shared debts without adjusting household expenses. Your serviceability is assessed using your apportioned share of repayments for existing joint liabilities only. This can be ideal where you want to isolate the impact of shared debts on your application.
Why Does This Matter for Australian Borrowers?
In 2026, Australian borrowers are navigating a challenging lending environment. APRA’s debt-to-income (DTI) caps — limiting high-DTI loans to 20% of new mortgages from February 2026 — mean that borrowing capacity is tighter than ever. Smart use of policies like St George’s apportioning options can make a significant difference to your outcome.
Consider this common scenario: a couple has a joint mortgage of $600,000. Under standard assessment, the full $600,000 liability is counted against one applicant. Under St George’s apportioning policy, only $300,000 may be counted — potentially allowing that borrower to qualify for additional lending that would otherwise be out of reach.
Who Can Benefit from This Policy?
- Couples assessing finance independently — where one partner is applying for a new loan while a joint mortgage exists
- Investment property buyers — looking to maximise borrowing capacity by apportioning existing joint commitments
- Separating couples — where a property buyout is being considered and one party needs to qualify on their own income
- Business owners and self-employed borrowers — navigating complex income and debt structures
Key Conditions to Be Aware Of
While this policy is a valuable tool, there are conditions that need to be met. Lenders will look at evidence of your partner’s ability to service their share of the debt, credit history, and the overall structure of your finances. A qualified Mortgage Broker can help you assess whether you meet the criteria and structure your application correctly.
Get Personalised Guidance
Every borrower’s situation is different. Understanding which apportioning option is right for you — and how to present your application — can be the difference between approval and decline. Speaking with an experienced Mortgage Broker gives you access to a wide range of lender options and the expertise to find the right home loan for your needs.
Need personalised assistance?
Contact Daniel Nguyen, Mortgage Broker at Finance Hub and Networks.
📞 0430 11 11 88
Credit Representative 573164 is authorised under Australian Credit Licence 573164. Your full financial situation would need to be reviewed prior to acceptance of any offer or product. Subject to lenders credit criteria, fees and charges will apply.
