In most situations involving a discussion surrounding money, preparation is key. The ability to be able to anticipate what will [most likely] happen in the future, or in this case, how much your home loan will probably cost, is vital for a successful outcome. If you can show your lender that it’s no problem putting [for example] $1200 pf away into a savings account [without touching it at all] for a number of months, you’re showing them that you could potentially afford a home loan.
Demonstrating a propensity to pay does a number of extremely helpful things:
- It helps you save for a deposit
- Shows your lender that you have the ability to pay x amount
- Can also show the lender that you can afford other living expenses, like bills and food, without touching x amount
- Finally; it shows your serious about this loan and that it isn’t a spontaneous decision.
These are all very important and it will really help your chances when they’re assessing your serviceability.
However, it isn’t all about showing the lender you can do it. It’s also about showing yourself that you can afford to do this, before you actually do it. It can help get you into a routine. Also, when the loan settles, it wont be such a shock when you have to start paying it down.
If you’d like an estimate on what you can afford to borrow and therefore what your repayments may be, feel free to give me a call on 0412411823.
Disclaimer: Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product.