In recent times, banks have become more diligent with their lending criteria. It’s our aim to help ensure you’re in the best position for success. We’ve outlined some quick tips to get your home loan approved and ensure a smooth process.
Keep loans well managed.
Make sure that all credit card statements or loans are paid by the due date. Ensure that your credit cards do not exceed the limit during the month. Even $10 over the limit or a small late fee or a payment one day late can cause a loan application to be declined. Also, if renting, make sure to pay your rent on time and avoid rent arrears.
Maintain transaction accounts.
Keep your everyday transaction account in good order with no overdrawn amounts. This can easily happen if a direct debit comes out of your account the day before you salary goes in – the bank may decline a loan with any overdrawn payments, even if it is ﬁxed up the following day.
Avoid unnecessary spending.
Afterpay and Zippay are considered debts so ideally try and pay these out and don't take on anymore until your home loan is approved. Also, avoid things such as sports bet, casinos or other forms of gambling spends that may be seen on your transaction account. Banks do not look favourably on this even if it’s small amounts.
Avoid new debts.
Avoid taking on more debts or credit cards as this can effect your home loan application. Lenders can see any ﬁnance enquiries that you make when they review your credit report.
Maintain steady employment.
Be aware that any employment or income changes can effect your home loan application. Contact our team if there are going to be any changes to your employment situation.
List your living expenses.
Make a list of your monthly living expenses – these need to be in line with what will show up on your transaction account. You could use our free budget kit to help with this.
Lenders like to see a solid savings pattern. If you're saving up 5% deposit, it's smart to use a separate account for savings and make sure you don’t spend or dip into your deposit. ING Direct have an excellent savings account.
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