Streaming services, fitness apps, music platforms, cloud storage, meal kits — it feels like almost everything today runs on a monthly subscription. While most subscriptions are relatively small on their own, they can quietly add up. And when you’re applying for a home loan, lenders look very closely at them.
🏦 Why lenders care about subscriptions
When assessing a mortgage application, banks and lenders don’t just look at your income. They also review your living expenses and regular outgoings to see how much you can realistically afford to repay.
Subscriptions, even at $10 or $20 a month, are counted as ongoing commitments. A handful might not seem like much, but multiple services can add up to hundreds of dollars a month. Over a year, that’s thousands of dollars that reduce your surplus cash flow — and therefore the loan size a lender may approve.
📌 Common examples lenders notice
🎬 Streaming services: Netflix, Stan, Disney+, Binge, Spotify
🏋️♂️ Fitness and wellness apps: Peloton, gym memberships, meditation apps
🍽️ Food delivery or meal kit subscriptions
☁️ Cloud and storage services: iCloud, Google Drive, Dropbox
💻 Software packages: Microsoft 365, Adobe, antivirus, gaming platforms
Many people forget some of these when asked to declare expenses — but lenders often review bank statements to double-check. Multiple recurring debits can raise questions about whether your disclosed expenses are accurate.
📉 The impact on your borrowing power
Example: A household has five subscriptions totaling $200 a month. Over a year, that’s $2,400 less in disposable income. Using lender calculators, this could reduce borrowing capacity by tens of thousands of dollars.
It’s not just about the dollars — it’s about perception. A long list of “nice to have” subscriptions may give the impression you’re not disciplined with money, even if you’re managing comfortably.
🛠️ How to manage subscriptions before applying
🔍 Audit your expenses – Go through your bank and credit card statements and list every subscription.
✂️ Cancel what you don’t use – If you haven’t logged into a service for months, cut it.
⏸️ Pause or downgrade where possible – Some services let you freeze or take a cheaper plan.
👨👩👧👦 Consolidate – If each family member has a separate streaming account, see if a shared family plan makes sense.
✅ Be upfront – Declare your genuine expenses. Lenders prefer transparency over surprises in your bank records.
Subscriptions are convenient, but they’re also silent spenders. When applying for a mortgage, they can affect how much you can borrow and how a lender views your financial discipline. Cleaning up unnecessary subscriptions a few months before applying can give you a stronger case.
If you’re planning to apply for a mortgage in the next 6–12 months, now’s the time to review your expenses — including subscriptions. We can help you understand what lenders look for and how to put your best foot forward when it comes to getting approved.