Mortgage brokers have told new borrowers to start saving and pay your bills on time, if you hope to obtain a loan in the next few months. Lenders are now looking at 6 monthly bank statements from borrowers and want to see that you have been careful with your spending with things such as new clothes, eating out, takeaway coffee, holiday travel or even childcare. Most lenders also want to see a regular savings history over the last 6 months.
The Australian Prudential Regulation Authority (APRA) have set new rules about declaration of expenses – everything is being assessed, so you should be organised. Lenders are exercising caution due to the the banking royal commission, which have been the main reasons to a tighter lending environment.
It hasn’t been easy to get a home loan approved in this current market due to tightening lending restrictions, but here’s a few quick ways you could improve your chances;
1) Get Rid of Credit Cards - Reduce or decrease your credit card limits if possible.
2) Pay Your Bills on Time - Late payments can a big problem when applying for a loan.
3) Start Saving - Show 6 months of saving history equivalent to the value of your loan repayment, or paying rent plus putting savings aside to the equivalent of a repayment amount.
4) Stable Employment - If you’re looking to obtain a loan, make sure you are employed in a permanent position in the three months leading up the application.
5) Talk to a Mortgage Broker - Find a good broker and obtain advice on how to plan for your loan.
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