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Get your house in order and get the right home loan

Oct 4, 2020 | First Home Loan, Home Loan Essentials

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Before you begin shopping around with different banks, filling out endless mortgage calculators or comparing interest rates online to get the right home loan, here are a few things you can do to get your financial house in order… pardon the pun.

Credit where credit’s due.

Take it from Runway Finance’s Kim Kershaw who’s been in the mortgage game for decades – credit records are super important.

“Having your credit record intact is vital, especially now. Credit checks used to be historical data but now it’s live and in real time so the banks know right away what level of risk you represent.”

Minimising your personal debt can give you a better chance of getting that new home loan, so start by getting rid of extra credit cards and/or lowering your credit limit to only what you really need.

Cleanse, save, repeat.

It seems pretty obvious, but the best thing you can do when getting ready to take out a loan is spend less than you earn.

Kim’s advice is simple: “Start saving and live on the bones of your butt for a while. Every choice is a chance to save a few more dollars.”

Cleansing or detoxing your finances is exactly what it sounds like – getting rid of bad financial habits so you can feel more stress-free and in control of your money.

Financial cleansing might involve sticking to only essential items for an extended time, unsubscribing from all those (let’s face it, annoying) retail sale emails, becoming more accountable and generally re-thinking all your spending choices. It won’t be easy, but it will be worth it.

Start with some ballpark figures.

Kim has been helping people get home loans for longer than he cares to remember and still relies on an old school rule of thumb when it comes to what you can afford to borrow:

“If your annual repayments on a home loan equate to 30% or less of your gross annual income, then you can be reasonably confident that you can afford to service the loan. The next step is finding the right loan, and that’s where we come in,” he said.

Find the right mortgage broker for you.

Paul Dunn from Runway Finance says finding the right broker is one of the most important steps you can take.

“It’s all about you, and what you need in your own personal circumstances. You need to find a broker that you can work with and you can trust. A good broker knows how banks think and can help you find the right solution much more efficiently than you can yourself by shopping around the banks.”

With so many different banks offering home loans, confusing ads for cheap interest rates and hundreds of online mortgage calculators there’s a lot to consider before getting a home loan. Let us do the thinking and the heavy lifting for you so you can sit back, relax and take off!

At Runway Finance we’ve got a no frills, no fuss approach and we’re fully loaded with great home loan deals and expert service.

Get started and explore our home loan options here.