Top tips for securing a low deposit home loan.

December 1, 2015

Starting to loathe the smell of baked beans? Avoiding fixing that dodgy rattle in the car? Saving for your first home can be a right of passage for most of us – living on a shoestring, all with that end goal in mind of kicking back in your very own home.

Yet if only seeing movies on a Tuesday and making a roast chicken last five days is starting to wear a bit thin, we’ve got some great news – chances are, you’ve already stashed enough away to get home finance.

So if your ready to go after that low deposit home loan? Here are some other things you can do to increase your chances of home finance approval:

Savings history

While rocking up with enough deposit is a great start, it’s also beneficial if you can show a history of saving money. Why? Basically, if you can regularly put away money now, it’s a good sign that you have the ability to consistently meet your home finance repayments into the future.

Stick with your job

While obviously you need wages coming in to pay off your low deposit home loan, home finance providers also care about how long you’ve been employed for. They’ll be looking to see if your employment is stable, so try to be in your current job for at least 6 months.

Pay your bills on time

A poor credit history can hang around like a bad smell so try to keep yours incident-free. How? By paying bills on time (this includes rent) and making sure your credit card stays under control.

Attack Debt

Got a personal loan lurking in the background? Or racked up some credit card debt? Existing debts aren’t going to work in your favour when it comes to obtaining home finance, so try to have them paid off before applying for your low deposit home loan. If you owe money on multiple credit cards, it’s sometimes worthwhile transferring all of this debt to a new, ‘no interest for X months’ credit card. Then cut that credit card in half and work hard at paying off every cent.

At Westgate Financial Services, we can help you secure the most competitive low deposit home loan on the market.  We can also help you lock down the First Home Buyers Grant plus whatever other grants you’re entitled to. Plus with our building partner Easystart Homes, we can help you fast-track your freedom and start building your OWN home.

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