Regardless of whether you're looking into property investment loans, a first home buyer loan or a construction loan, one of the most crucial aspects to understand is your borrowing capacity – or how much you can borrow from a lender towards achieving your property goals.
With the increasing popularity of auctions sweeping the nation, it would be a good idea to organise this prior to approaching the market.
This way, when you fall head over heels in love with a property, you can act with speed and certainty to place your bid and secure the home, without having to worry about how much you can borrow towards your real estate endeavours.
Lenders will take into consideration a number of different factors when weighing up your borrowing capacity. They need to know that you are a trustworthy recipient of their funding before proceeding.
Things like your income and expenses will all be scrutinised, to ensure that you are in a reliable financial position to take on their debts and make good on the monthly repayments without complication.
One of the ways you can help to boost your chances of securing a decent borrowing capacity is to pay off any outstanding debts you may have. Things like credit card payments and personal loans should all be paid in full to aid your overall credit rating.
Furthermore, cancelling any unused credit cards will also increase your financial standing, helping you to reach your property goals with ease. Getting in contact with a home loan expert will help you to figure out the options available to you.
You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.