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Applying for the mortgage can be overwhelming as it includes meticulous preparation – both mentally and financially. You may feel like your life is under scrutiny as your lender evaluate your home loan application. These criteria may identify whether your application will be approved:
Lending institutions prefer some borrowers in terms of residency and age. You must be at least 18 years of age to be eligible to apply for the mortgage. However, lenders may be reluctant to older borrowers, specifically those over 55.
Lenders will evaluate your debt repayment history and credit score. There are varied credit providers who can provide you with a credit score.
The lender wants to determine if you have a stable source of income and most likely look at your employment. Hence, they will scrutinise the length and type of your employment.
If you are a seasonal or casual employee or have been with the same employer for less than two years, you may experience a challenge to get your mortgage approved.
If you are a PAYG employee, you may have a comparatively easy time presenting your income via payslips. Moreover, for self-employed borrowers, there are different terms.
Your income significantly affects your home loan application. Lenders will evaluate your income to identify your ability to make repayments.
Your liabilities are debts you have, including personal loans, credit cards, etc. On the other hand, your assets include any property you own, superannuation or vehicle. Lenders will look at both your assets and liabilities to assess your application.
Lenders will also analyse your monthly expenses to identify the earnings not dedicated to necessities, paying bills, and additional spending.
The type of property you wish to purchase will be used as security for your mortgage. Lenders thoroughly appraise the type of property you want to buy in terms of title, nature, location and size. If you default on the loan, the lender will sell the house to retrieve the amount you owe.
Most lenders look at least five per cent of your deposit coming from genuine savings. Moreover, when your deposit is below 20 per cent of the property price, you must pay for the lender’s mortgage insurance which covers your lender if you default on your mortgage.
The size of your mortgage influence how lenders evaluate your application. Make sure your suggested borrowing amount fits between the maximum and minimum mortgage limit required by the lender. Hence, the sum you want to borrow should not exceed the loan’s maximum loan-to-value ratio.
To learn more about property finance and how our loan specialists helped clients create their property portfolio, let’s connect over a no-obligation phone chat or meet in person with our experts.
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”