How Consistent Saving Impresses Lenders
If you happen to be saving for a down payment on a home loan, ask yourself this question: how is a deposit unlike other savings goals?
We’ll answer that one for you. For starters, it’s probably much bigger than things you are normally used to saving for - an iPhone this is not!
The key thing, however, is that the way you save for your deposit is almost as important as how much you save.
Does that even make sense? Sure it does! Think of it this way. When lenders are deciding how much they are willing to let you borrow for home loans, they look at many different factors.
All these factors boil down to one thing: can we rely on this person to pay back their loan on time?
So what they are looking for is financial discipline - and evidence of consistent saving over a long period demonstrates just that.
Remember this when you are trying to save for your deposit - your borrowing capacity depends as much on your week-to-week budget adherence as it does on the final result!
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.