What Lenders Generally Look For (of which can determine whether you are eligible for a
home loan):
Genuine savings - First home
owners
- Do you have at least 3% of the property purchase amount
in savings, accummulated over the last 3 months?
- Can you show bank statements showing savings
history?
- Can you obtain a reference from an Estate Agent
regarding you paying rent (amount and on time)
- Are you eligible for any First Home Owners Grants (FHOG)?
Credit history / Money
Management
- Do you have any paid or unpaid defaults or judgements on your credit history within the past 7 years?
- Do you have any arrears on your current loans or credit cards?
- Do you have any savings?
Loan amount compared to Property
Purchase Price (LVR)
- What percentage of the property value is the loan
amount?
Lender Mortgage
Insurance (LMI)
- Is the loan over 80% of property value?
- Can the LMI be added on top of the loan amount (up to
97%) or is it included in the total loan amount (up to 95%)?
Income
- Can you afford the loan according to the Lender's individual loan servicing calculators?
- Is there anything in the foreseeable future that may reduce your ability to pay a loan without
hardship?
- Level of income
Work History
- Are you employed?
- Length of time in current job
- How often you change jobs
Equity in
property
- Do you own any other real estate?
- Are there any loans against it/then?
- How high is your current loan in relation to the value
of your home/property?
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