When you’re looking at taking out credit for a new home, there are a lot of questions you’re likely to be asking yourself, especially regarding exactly how much you will be able to borrow. Whether you’re trying to get a bad credit mortgage or purchase a home using an SMSF loan, knowing your borrowing capacity lets you buy with confidence.
And if you need to increase your capacity for borrowing? Well, here are a few things that could help you out.
Picking an appropriate lender
Sometimes, your employment circumstances can sorely limit your borrowing capacity – especially if you’re self employed. By checking in with a different type of lender that better suits your situation, you may be able to boost that borrowing, enabling you to get up onto the property ladder!
This includes talking to us about our low doc loans which are suitable for anyone who works for themselves, and may not have the paperwork for a traditional loan.
Minimising bad credit
One great way to increase how much you can take out in a home loan is by reducing credit debt. Whether it’s a mobile phone bill left unpaid or credit cards that must be caught up on, you need to take care of these costs before you apply for a loan. Once this is done, you might find you are able to access more funding! A dream home doesn’t have to be out of reach – you just have to be prepared.
Of course, sometimes these debt and poor credit situations are unavoidable. Redrock also cater for this with a series of bad credit mortgages. These help people out by providing a solution where traditional lending may not be able to, this allows Australians to buy property much more easily, and start building capital value growth for the future.
