Getting Ready for a Home Loan

You are selling yourself to the lenders that you are worthy for a 30-year loan

Are you someone who is:

  1. Trustworthy
  2. Reliable
  3. Good credit history
  4. Capable of making the repayments on time

Firstly, its important your financial health is up to scratch

Showing evidence of a consistent savings plan, this will come from bank statements showing how the deposit was saved (exception Keystart don’t require genuine savings)

It is essential to ensure you have the necessary funds for a deposit for a home loan

Regular and reliable employment with stable income to display steady finances

Clear any debts and clean up your credit history, a poor credit score can disqualify your home loan application

Get rid of gambling habits that could be seen by the banks as an unpredictable control of finances

Maximise Borrowing

Reducing any unnecessary living expenses, trimming your expenses will help save more money for a deposit but also increase your borrowing power

Having Pay later schemes open with an available limit will reduce your borrowing power

Reduce credit card limits, even if you owe no money on them your borrowing capacity is reduced

Reduce any unsecured debt, like personal loans

Evidence of consistent income for all applicants, increase your income if possible

Lenders also assess your job status – full-time, part-time, contract or self-employed, full-time PAYG is the lenders preferred job status

Complete any outstanding tax returns

Having a good credit score, this will show your credit history and any outstanding loans

Get rid of gambling habits which will be seen as unpredictable spend and a risk of debt and ruin