How Hard is it to Get a Mortgage?
Updated: Aug 16, 2019
Last time we looked at how using a mortgage broker works. This time we’re going to look at the current lending environment and if it’s hard to get a mortgage.
You might have heard a bit in the news that banks have become a bit stricter about assessing applications. You might also have heard about different home deposit requirements, for example you might be wondering if you can still get a mortgage with a 5% deposit or if you need 20%. Knowing this is very important if you’re in the process of saving for a home deposit!
I asked Lillian Dang, a mortgage broker with Zenrg Finance, if she could provide an update on what you need to get a mortgage at the moment. She said that banks are being very careful in terms of assessing income, so if you are planning on taking out a mortgage in the next year or two to think very carefully about your spending and to seek assistance sooner rather than later – as you may need to make adjustments to your spending to get the loan you want.
Other things to consider?
1) Depending on your situation you may be able to get a mortgage with a deposit of less than 20%. However deposits of less than 20% require Mortgage Lenders Insurance. Note that this insurance covers the mortgage provider – not you!
2) Expecting a change to your situation? Changing jobs, having a baby or starting a business can all impact how much you can borrow. If this could be on your horizon seek assistance sooner rather than later to understand the implications.
3) Got a credit card or personal loan? This might affect how much you can borrow. Again, check on this sooner rather than later to see if there is any particular course of action over another that would help you. Got a question about mortgages or buying a home? Feel free to get in touch, though you’ll probably need to speak directly with Lillian or another broker! I’d be happy to put you in touch.
Alison Kaigan – Your Canberra Financial Adviser