With tougher lending standards now in place, borrowers need to be more prepared. Ensuring you have a good savings and employment history and the necessary documentation, can help smooth the path to home ownership.
The days of 100 per cent loans are all but gone so borrowers now need to ensure they have some savings at their fingertips. Borrowing 100 per cent of the cost of a home was once a commonplace however home buyers today are facing substantial deposit requirements as lenders adjust their lending standards.
The majority of mortgage lenders now require a deposit of between 5 and 10 per cent, with many requesting evidence that the deposit was saved overtime, which is commonly referred to as ‘genuine savings’. For many would-be home buyers these changes are disappointing as many have the income to service a mortgage, but just don’t have the cash to stump up the deposit.
While your new home may now be a little harder to secure, don’t despair. Here are some tips to help you enter the market sooner.
If you’d like to know more give us a call – we’ll be able to assess your borrowing capacity as well as give advice on the appropriate lender and product types to suit your needs.
You may be closer to that new home than you think.