2023-05-24 09:49:24
Por Olivia Day para Daily Mail Australia
04:44 May 24, 2023, updated 06:27 May 24, 2023
- Tradie loses a home loan due to a joint deed
- The developer shares his best tips for getting approved
A developer revealed that Australians are denied a home loan because they spend on cars, and he shared some simple tips to help you get approved.
andres campbell, Specializing in homes and land for first-time homebuyersHe warned potential owners to think twice before spending on a new car.
Campbell said getting a $15,000 personal or car loan can reduce an applicant’s home loan capacity by $100,000.
He said a man in his 20s was bitterly disappointed after he applied for a home loan shortly after borrowing money to buy a new Ford Ranger pickup truck.
Campbell said the man’s ability to borrow decreased from $600,000 to $200,000 because he would have to make high-interest monthly payments on his new Ford Ranger, which is a depreciating asset.
The specialist told Daily Mail Australia that in the eyes of the bank, monthly payments of $1,200 to $1,300 would indicate that the applicant does not have enough cash to comfortably pay off the home loan, with interest rates still rising.
The other day I spoke with a young man who made $112,000 a year. A man, with no other commitments, Campbell explained in a Tik Tok Video earlier this week.
And I’m thinking, No problem, this guy could borrow about $600,000 for his first home. He then proceeded to tell me that he had just taken out a new loan of $80,000 to buy a Ford Ranger.
So his borrowing capacity went from about $600,000 to $200,000 or maybe less.
If you’re thinking about buying a new car, shop around for your home first, because it’s so easy to go and get a new car loan later, once you’ve proven your home loan payment and feel comfortable. they.
Then you can determine what you can afford on the car loan.
Campbell said if first-time buyers buy a car before taking out a home loan, it can “significantly” reduce their borrowing capacity.
He said banks would consider all debt before approving a home loan, which in turn could reduce the number of homes available to an applicant.
“You might have some debt, but it will hinder your ability to borrow,” he said.
Campbell said people looking to get into the real estate market should make sure they don’t have any outstanding bills and have good credit.
It’s also good to remember when buying your first home that it’s not your forever home. Make sure it’s something you can afford, and don’t go overboard with flashy extras like floor-to-ceiling mosaic tiles or high ceilings.
He encouraged first-time buyers to clean the slate by not overdrawing any of their bank accounts and maintaining a steady income.
Campbell said most of her clients were young Australians in their 20s and 30s who were eager to put rent behind them.
“They are paying high rent, so they might as well be paying a mortgage,” he said.
“It is a better financial decision to buy a house than to buy a car.”
If you are interested in purchasing your first home, Mr. Campbell recommends speaking with your local financial agent.
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