There is no doubt that Banks and other Lenders within the Australian home loan market have tightened their lending standards over the last 12 months. This tightening is having a significant impact on the borrowing capacity of many Australians looking to obtain a Home Loan.
However the good news is that with some focus and financial management you can still present a strong case on your borrowing capacity to the Banks.
Getting into the property market and buying your first home can seem like an impossible task to many. Saving the deposit seems like a big ask, then you need to consider Stamp Duty and other purchase costs that just require even more savings!
Getting the deposit together takes discipline, but the rewards are great if you can manage your money effectively.
So what are the steps a future first home buyers should be doing to achieve their goal?
Mortgage Brokers (also often referred to as Finance Brokers, Mortgage Planners or Credit Advisers) act as an intermediary between lenders and borrowers to negotiate loan facilities.
Over the last 10 – 15 years the usage of Mortgage Brokers in Australia has increased consistently and it is now estimated that approximately 1 in every 2 new home loans in Australia is sourced through a Mortgage Broker.
So why do so many borrowers utilise a Broker rather than going to their local Bank? Some of the benefits and reasons include: