It is now harder than a few years ago to get approval for a loan. That's why you need to make the best argument about your ability to manage a new loan.
Here are some tips to help you improve your accessibility and increase your chances of getting a loan:
1. Shop – use a mortgage broker for help you find the best rates and loan products on the market. Do not forget that it is not always the case to obtain the cheapest absolute interest rate; after all, what is the point of finding a loan that saves 0.2% if the bank does not approve your application initially?
2. Reduce your credit card limits – immediately! Credit cards absorb your disposable income, so keep it to a minimum. As you pay for them, keep reducing the limits. You also do not need to use round numbers – you can reduce a reduction, for example, from $ 2,500 to $ 1,800.
3. Eliminate personal debts – as you can. Car loans, store cards, credit cards, personal loans, fast payables: Pay them first (if you can afford them), then cancel the cards and accounts as they are paid. This will free up your income from the bank's point of view. You can also combine them into one affordable monthly rebate and cancel all cards and credit facilities so you do not accumulate more debt.
4. Decrease in Expenditure – Banks want proof of your financial reliability. Demonstrate it (at least a few months before submitting your loan application) by reducing your available expenses for restaurant meals, taxi meals, clothing, gadgets and other lifestyle expenses.
5. Refinance – to extend the term of your existing loan. If you obtained your PPOR loan for 5 years, refinance the current balance over a new 30-year period. This will reduce your monthly repayments and improve your ease of maintenance. Just be sure to continue paying the same higher monthly repayment as you paid previously, so you do not pay a considerable amount of additional (avoidable) interest.
For the complete story, including a comprehensive survey on the credit crisis and strategies to help you get a loan in 2019, read the full article in the March 2019 issue of Your magazine. Investment Property.
Available at Coles news agencies and supermarkets from February 14 to March 14, 2019, or download the magazine now.
Whether you're looking to buy your first home, move, refinance or invest in a property, a mortgage broker can help. Access loans from all major lenders, get help with paperwork – plus, this service is free. Get help from a local mortgage broker
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