Getting A Home Loan – Servicing

Gold Coast Mortgage Broker Kane Dury, on servicing your loan and tips to help when things are tight.

Obviously in order to get a home loan you need to display to the lender that you can service (repay the loan to the bank that you are borrowing from) the loan. Generally you will need a job with good consistent and reliable income that can be displayed to your chosen lender, if using a Mortgage Broker on the Gold Coast they will find a suitable product for you, via showing payslips and end of financial year payment summaries.

With the interest rate’s of today being the lowest of all time, this puts First Home Buyers in a favourable position when it comes to affording their home loan, but what things can be done by the borrower when things are tight and you need to borrow that little bit extra to get your dream home.

So here are a few ideas to help you prepare for your loan application.

Credit Card Debt, when the bank looks at your current asset and liabilities, they look at how many credit cards you have. So if you have three credit cards and two of the credit cards have limits of $9,000 each but no outstanding balance, the bank will calculate your borrowing capacity as if the cards were fully drawn. And if your third credit card has a limit of $9,000 and only $3,000 owing, try lowering your limit to $4,000 and cancel the other two credit cards. This way the bank will assess you as having a total of $4,000 in credit cards, not a whopping $27,000.

Pay down your car loans and personal loans, start with the lowest balance, once cleared contribute the repayment to the next loan, then as you pay off each car/personal loan add the repayments to the next debt. The lower the amount of unsecured debt you have the more of your income can go towards servicing your home loan. If your not sure how to go about this, contact your Boutique mortgage broker on the Gold Coast.

When you apply for your home loan, try considering a longer loan term, by having a longer loan term this will lower your monthly repayments. It is important to understand that this will cause there to be more interest over the life of the loan. So ensure you discuss it with your mortgage broker or lender to make sure it is a suitable strategy for your personal situation.

Save, Save and Save…. Remember that he more saving the more deposit you have. Banks love to see good disciplined savers. And pay your rent on time, this show good conduct and displays to the lender that you are ready for a home loan.

And lastly, use a mortgage broker to do some shopping around for you. In many cases a borrower may go see their bank, which they have been with for any years, only to be told they are not ready for a home loan. What the bank doesn’t tell them, is that five of it’s competitors will happily lend to them. If you speak with a mortgage broker, they generally have a large panel of lenders and can find you a suitable loan product that meets your needs. They can explain all the loan features and which bank and why.

Thanks for reading.

Kane,
Boutique Mortgage Broker on Queensland Gold Coast.