There have been a lot of changes to the lending market recently; every time you watch the news there’s generally something about lending, the Royal Commission or which bank is now in trouble for what. The big question is, how does this affect you, and what does all this mean for you and I when it comes to our home loans and banking?
What you can do?
There are a number of things you can do in preparation for making any changes to your loans and they are:
Know Your Plans
If you are looking to do something major in the near future make sure you talk to your broker. Selling, refinancing or any other future changes may have an enormous impact on you, so talking to your broker before you make these changes will mean they can make suggestions or recommendations to help you. Additionally they may be able to forewarn of any perceived issues that could arise.
Make Your Payments
Making payments on time every time is always so important, but never more so than when you are looking to borrow money. Lenders are now wanting to see statements on all accounts -including current credit cards and loans – to ensure you are making payments on time and that the accounts are in order.
Live Your Monthly Living Expenses
Lenders are also starting to ask for recent statements on your accounts to ensure your monthly living expenses are what you claim them to be. If you’re ‘living the dream’ prior to locking in your mortgage this could impact your borrowing capacity and make it difficult to borrow the funds you’re after. Making sure you are living your true monthly living expenses prior to seeking your loan will avoid any issues.
Talk To Your Broker
A chat with your mortgage broker when making any changes at all in your plans or circumstances will really benefit you. You never know – there could be options available to you that you weren’t aware of, and a quick chat with your mortgage broker can save you time and stress. Also, don’t forget that another important time to talk to your broker is if you are having trouble paying your loans. They can give you some simple tips to help you get back on top before it’s too late.
There’s no doubt that the lending landscape is changing on a daily basis, but all of the changes are put in place to protect you and make sure you’re not getting in over your head. It may seem daunting or, at times, over the top, but at the end of the day no one wants to experience hardship or having to sell their home because they can no long afford it. If you have any doubts or questions Contact me today for a quick chat.