Applying for your home loan can be easier than you think. More savings and less personal lending are obvious characteristics to target.
Other things to consider so that you have the best chance of getting an approval include:
- healthy bank statements
- multiple banks
- better understanding of your income
Healthy Bank Statements
The banks now study your bank statements more deeply to get a handle on your expenses. They generally look at 3 months worth. So ensuring that you can afford your home loan starts earlier than the application in many cases. The banks generally use a higher interest rate for their calculations. So its a good idea to keep a bit of fat in between your income and expenses.
Multiple banks
At the time of writing this, it does not pay to have all your eggs in one basket. Some banks will prioritise the availability of certain types of home loans, for their existing clients. This means that for a couple, having salaries going into two different banks can at times double your chances. Also having bank products spread across banks can help, such as credit cards and cheque accounts.
Better understanding of your income
It helps to be open about your future potential. Do you hold or are about to get qualifications in your industry. Are you up for a promotion? These things have an impact on the understanding of your future ability to keep up with repayments.
