Applying for finance

Banks and other home loan lenders want to know that you will be able to repay the money they lend you. It’s your job to gather all the documents and proof to show the bank that you will be able to meet your repayments. Lenders want to see:

Stable Income - Demonstrate a strong employment record and regular income over several years.

Low Levels of Debt - Try and reduce your level of debt before applying for a home loan. Lenders want their loan to be your priority. They also want to limit the amount of potential debt you can get into. If you have high limits on your credit cards then reduce them.

Savings History - Banks want to see a regular savings history. A savings account, with regular deposits over a three to six-month period will help your application. Use the period while you’re waiting for your home site to be ‘titled’ to increase your deposit through regular savings.

Strong Payment History - Banks want to see that you have managed debt previously. If you can demonstrate a loan that you have successfully managed to repay, it will help your application.

Do your paper work. Lenders will appreciate paperwork that is detailed and in order. By keeping detailed financial statements and records of income and expenditure throughout the period prior to application you will increase your chances of getting you home loan approved.