Your borrowing power could have a big impact on how soon you reach your home ownership goals.
Here are five helpful tips that could improve your chances of getting the loan amount you want.
Consider lowering your limit, or even cancelling your credit card if it works for you.
When assessing borrowing power, lenders tend to look at your maximum credit limit, rather than how much credit you’ve used. So, even if your card is just for emergencies, consider whether your current limit is right for you.
It’s easy to set and forget your finances, but a regular finance check-up could help speed up your journey to reaching your goals.
You may find it helpful to check your expenditures, review your existing loans and create a budget. Even a few small changes could help set you up for success.
Lenders typically like to see a history of regular savings. And the bigger your deposit, the less it becomes a limiting factor to how much you can borrow.
While saving up for a home loan deposit is no easy feat, even an extra $20 a week could have a positive impact.
Just like credit cards, any existing debt can affect how much you can borrow. If you’re juggling multiple loans, you may want to consider consolidating your debt.
One loan means one easy-to-manage payment, which could be easier to get on top of. Consider discussing your debt consolidation options with your local lending expert.
Different lenders use different criteria to determine borrowing power. A free-thinking approach to lending could be just what you need to get the loan amount you want.
A Liberty Adviser can help you navigate the lending landscape to maximise your borrowing power and help you achieve your home ownership dreams faster. Get in touch today.
The start of a new financial year is an opportunity to refocus your finances.
Simply having a credit card could impact your borrowing power.