Improve your chances of getting a home loan in 2020
If you’ve been thinking about buying a house, it seems like 2020 is the year! Thanks to low interest rates, government incentives and the current economic climate, property is now more accessible than ever.
The pandemic doesn’t mean you should put off buying your dream home altogether.
The first homebuyer schemes, additional grants and some lenders waiving mortgage insurance mean you may be able to save thousands.
It’s also important to note that lenders are lending money to those on JobKeeper payments as long as certain conditions are met.
In most circumstances the banks will compare pre-JobKeeper income with current income. They will then use the lower amount to test if the applicant can afford the loan. Providing there are no changes in the borrower’s employment situation in the future, COVID-19 shouldn’t affect their borrowing capacity.
Most borrowers have been pleasantly surprised that they can potentially move into a suburb they otherwise wouldn’t have been able to afford. On top of this, if you put a hold on your mortgage during COVID-19, your ability to borrow funds or refinance should not be affected.
Want to know how to improve your chances of getting a home loan in 2020?
1. Close your credit cards or reduce your credit card limits. Accounts such as AFTERPAY and ZIPPAY will also be considered, so make sure these are also closed.
2. Close unsecured debts such as personal loan, car loan and HECS debt.
3. If seeking a loan with a value ratio above 80%, consider bringing it down to 80% or below.
4. Reduce your living expenses for three to six months before applying.
5. Take advantage of the lower assessment floors.
All the best with securing your dream home in 2020!
If you liked Improve your chances of getting a home loan in 2020, check out our previous blog here.