How to Get a Home Loan?

In this day and age, having spare money lying around is not something the majority of us has. We all want to own our own home that we can say is ours, but the reality is that most of us cannot afford to buy a house. House prices have increased drastically over the years as well as inflation which makes everyday living that much more expensive. Getting finance from the bank is not as easy as it used to be before the global recession. But, if you do the correct things as outlined below the banks will gladly lend you money.

“We all want to own our own home that we can say is ours!”

Have a steady income

In most instances banks require an applicant to have proof of a consistent income over the last three years. Buyers that maintain a good credit rating and show a stable source of income will be looked upon more favourably than those with impaired credit records.

Have a good credit rating

Make sure that you keep a clean credit record and that you manage your credit accounts well. By doing so you will have a much greater chance of approval. You need to ensure that you don’t get any black marks against your name by non-payment or payment lapsing on your credit accounts.


Have a deposit

While it is possible for you to get a 100% home loan in certain circumstances, the standard requirement is for the applicant to have a minimum of a 10 – 20% deposit of the asking price of the home, and in certain cases a deposit of up to 30% may be required. This is determined by how much risk the bank believes it is taking on by granting you a home loan.

The lower the percentage of the price that is required to be financed, the more likely it is that you will obtain bond approval.

Get your financial documents in order

When you apply for a home loan, you will need to provide your bank with a number of financial documents. Having these documents already assembled will help speed up the processing of your loan application.

By following the simple advice provided above you will more than likely have no trouble getting a home loan. So go out there and get your dream home. If you would like help in doing so, please feel free to get in contact with me.