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First Home Buyer Loans, Home Loans, Tips

Understanding Your Borrowing Capacity

Home loan borrowing capacity.

If you’re looking to buy a home, it’s important to understand your home loan borrowing capacity. It’s a smart idea to get a loan pre-approval before you start looking for a home for two reasons:

1) it will let type of home and location that you can afford, and

2) it will put you in a strong bargaining position when you want to make an offer on a home that you like. Your offer will be much more likely to be accepted than an offer that is subject to finance approval.

Home Loans, Tips

Home loans and bad credit ratings

Can a bad credit rating stop you from getting a home loan?

As experienced Melton Mortgage Brokers, we can tell you that the simple answer to this question is ‘yes’. Bad credit ratings do affect your ability to access home loan finance. The main concern of any lender when assessing your home loan application is that you’ll be able to make your repayments.

If you have a bad credit rating, it signals to a lender that you’re a higher risk of either not making your repayments on time, or of not making them at all.  Lenders in Australia are legally required to lend responsibly.

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