Are you considering purchasing a home in Brisbane but unsure about your borrowing power? Securing the right home loan is crucial for turning your dream home into a reality. At Oak Bridge Loans, we understand the importance of maximising your borrowing power to access the professional home loans products available. In this blog, we'll explore eight effective strategies to increase your borrowing power and achieve your homeownership goals with confidence.
Boost Your Credit Score:
- A higher credit score indicates lower credit risk to lenders, allowing you to access more competitive interest rates and loan options.
- Ensure timely payments on existing debts and minimise outstanding balances to improve your creditworthiness.
Reduce Existing Debts:
- Lowering your existing debt obligations, such as credit card balances and personal loans, can significantly enhance your borrowing capacity.
- Consider consolidating debts or increasing repayments to reduce outstanding balances before applying for a home loan.
Increase Your Income:
- Higher income levels positively impact your borrowing power by demonstrating your ability to repay the loan.
- Explore opportunities for career advancement, additional sources of income, or supplemental employment to boost your financial standing.
Save for a Larger Deposit:
- A larger deposit reduces the loan-to-value ratio (LVR), which can lead to lower interest rates and fees.
- Set a savings goal and allocate funds regularly towards your deposit to demonstrate financial discipline and improve your borrowing capacity.
Minimise Financial Liabilities:
- Limiting financial liabilities, such as outstanding tax debts or court judgments, strengthens your financial profile and increases lender confidence.
- Address any outstanding liabilities promptly and maintain clean financial records to enhance your borrowing power.
Choose a Longer Loan Term:
- Opting for a longer loan term spreads repayments over a more extended period, reducing the immediate financial burden and potentially increasing your borrowing capacity.
- Discuss available loan term options with Oak Bridge Loans to find the most suitable arrangement for your financial circumstances.
Demonstrate Stable Employment:
- Consistent employment history and stable income streams reassure lenders of your ability to meet mortgage repayments.
- Provide documentation of employment stability, such as pay slips and employment contracts, to strengthen your loan application.
Seek Professional Advice:
- Partnering with reputable home loan brokers, such as Oak Bridge Loans, provides access to expert guidance and tailored solutions to optimise your borrowing power.
- Our experienced team will assess your financial situation, identify opportunities for improvement, and recommend suitable home loan products tailored to your needs.
At Oak Bridge Loans, we are committed to empowering our clients with the knowledge and resources needed to secure the best home loan brokers in Brisbane. By implementing these eight strategies to increase your borrowing power, you'll be one step closer to achieving your homeownership dreams. Contact us today to discover how we can assist you in navigating the home loan process with confidence and professionalism.