SAVE A DEPOSIT OR PAY OFF DEBTS FIRST?
Your finances must be in order before you approach a bank for a mortgage. Many save a small deposit while making minimal repayments on their personal loans and credit cards. But is this wise? 👉Contact Mortgage Broker Revesby to walk you through it. No fee service - end to end.
What about no deposit home loans?
Yes that's true for police, fire fighters, ambulance workers etc and for those who have a guarantor.If you're an emergency worker you can also get your Lenders Mortgage Insurance waived and borrow the purchasing costs too (105%).What if i don't have a guarantor?
Your deposit must show genuine savings.Need 5-10% depending on government grants.Little other debts or your credit score will fall.
If you have <5% deposit, then you need to save more.If you have >5% but have other credit card debt, then you need to pay that down. Credit cards
As a rule of thumb, pay down your credit cards until you owe less than the 5% deposit you've saved. Skipping one repayment can be enough to decline you for credit. This is held on your credit file for 2 years.Start saving for a deposit!
Setting up an automated payment into your savings is the best way to show your bank that you are a good bet.Your goal is minimum 5%. Potentially your state has a First Home Buyer grant & stamp duty exemption that will lower the amount you need. Other Factors
Stable employment history.Clean credit file.Borrowing capacity/power.
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