10 Steps to increase your borrowing power.

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10 Steps to increase your borrowing power.

Maximising the amount a lender will hand over to you isn’t about trying to take on unmanageable levels of debt. It’s a matter of taking a few simple but smart steps that could mean the difference between toiling in that ‘fixer-upper’ or owning your dream home.

1. Shop around for lenders

Different lenders define income in so many different ways that it pays to use a mortgage broker who knows their way around what’s included and what’s not. One lender may allow share dividends as income, while another lender may not.

2. Shop around for the right mortgage

A good mortgage broker will help you choose the most appropriate mortgage. Even with one lender, your borrowing capacity can vary due to the loan type that you choose. If you add features such as a line of credit this can reduce the amount you can borrow.

3. Update your financial records

Try to have your PAYG income tax return as up-to-date as possible. This gives a better historical view of your income than just the two most recent payslips.

4. Check your credit rating

Check your credit rating before applying for a mortgage. Due to changes to the Privacy Act from 12 March 2014, your rating may not be as healthy as you thought. The national credit reporting agencies are Veda, Dun &Bradstreet and Experian. Find out more here.

5. Roll your debts into your mortgage

Unsecured debts such as personal loans and credit cards have expensive monthly repayments, and these monthly repayments cut in to the amount you can repay on a mortgage.

6. Reduce debt and credit limits

If you have unused credit cards with limits that are more than you need, then cancel those cards. Also, cancel any other cards – such as department store cards – that give you credit. Every $1000 on a credit limit – even if not spent – detracts from the amount you can borrow.

7. Investigate family pledges

Guarantor or family pledges may let your parents or family take out a second mortgage on a percentage of their own property to guarantee repayment to the bank if you fall behind.

8. Consider shared equity

Some lenders will give you a larger mortgage in return for a certain share of the profits when you sell. If you don’t make a profit, then the lender does not take a share.

9. Take a long loan

While 25-year mortgages have been the norm, that’s changing to 40 years in some cases. A longer loan cuts your repayments, but increases the total interest you will pay over the life of the loan.

10. Save more of the deposit

Lenders look for consistent saving records, preferably for more than six months. Saving more can be as simple – or as hard – as doing without that extra coffee, or taking your lunch to work each day. It all adds up and reduces the amount you need to borrow.

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Thinking of Refinancing?

Why would you let this happen?

Maybe you didn’t know this but a large majority of home owners in Darwin who have a mortgage are needlessly paying more interest to their bank than they need to be …

How do I know?

Well, every day, I help time poor people refinance their loan to a better rate.
The best part about this is I get to hear about how they have used the money they have saved
They all get really excited when they find out they can re channel the savings into things like

A new kitchen fit out
Remodeling their bathroom
Adding an extra room to the house
Some have replaced their car and a few …
They are posting pictures form their overseas holidays.

And some did this, without spending a cent more out of their weekly budget. They just used that surplus that they saved through refinancing and reapportioned it to a better-quality lifestyle.

Isn’t that amazing?

If the thought that you are paying too much interest on your mortgage bothers you, then I have created a 5-point check list that tells you how you could turn this around in your favour.

The 5 Steps To Changing Your Lifestyle Through Refinancing Guide

And the good news is …

It is easy and fast to implement each step.
To receive your copy of the guide click the Learn More button, put in your details and I will email the guide to you straight away.
I’ve seen how following the checklist has put a big smile on my clients faces and I would love to see it do the same for you!

Contact - 0447 499 794

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Arafura Finance Brokers is an Authorised Representative (No. 420372) of BLSSA Pty Ltd, ABN 69 117 651 760. Australian Credit License Number 391237.

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Contact Nick Kirlew Mortgage Broker on 0447 499 794.

Darwin, Refinance, Home Loans, First Home Buyer, Mortgage Brokers.