A common trap many people fall into is to borrow the maximum amount the bank will lend them, and not take into account possible future interest movements. Today's affordable loan repayments could quickly become unaffordable in a short period of time.
Melbourne Mortgage Broker, What If We Finance will be able to quickly help you ascertain your borrowing capacity for a home loan and find the most appropriate home loan for you. The factors that go into calculating your borrowing capacity are varied, but generally include the following factors:
Income & Income Stability
How much do you earn, frequency of income and type of income (e.g. overtime or casual income).
Lenders will generally have different criteria when ascertaining the stability of income. There are slightly different conditions for self employed individuals, full-time employees, part-time or casual employees.
All other loans (for example car loans) need to be taken into account when ascertaining your borrowing capacity. In some instances, it may be more worthwhile to refinance some existing loans when applying for a new loan.
Credit Cards/Store Cards/Charge Cards
The actual current balance is important, but the limit is generally the more important number to lenders.
Your Credit History
Lenders will actually conduct a credit check on you and your credit history can have a large bearing on the outcome of any loan application. It is always best to fully disclose any credit issues you have had to deal with to your Melbourne Mortgage Broker.
Number of Dependants – the number of dependents you have
Lenders have different rules and criteria when determining your borrowing capacity and you may be surprised to hear that sometimes the difference in loan amounts between lenders can be quite substantial (in some cases in excess of $90,000) - even though the interest rates are exactly the same.
The lack of transparency of banks and lenders when it comes to calculating how much you can borrow is why you should contact your Melbourne Mortgage Broker What If We Finance.
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What If We Finance is a boutique Melbourne Mortgage Broker who believes not all mortgage brokers are created equal. Come and see why...