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When it comes to home loan application or buying property through loan, every detail must be checked for it could affect even your little chances.

Below are the 7 things you must consider to get your first home property.

HECS Can Affect Your Borrowing Power

Your HECS any other debt, may this likely be factored  into your borrowing capacity. Always bear in mind ongoing HECS repayments will reduce your weekly income and it can affect your borrowing power

Your Spending

Excessive spending could ruin your home loan prospects.  There is increasing bank scrutiny on people’s spending. You need to be aware that lenders will look into your credit card statements and transactions and see where your money goes.

Buy Now, Pay Later like Afterpay

Buy now, pay later services could actually be viewed as ‘debts’. These are liabilities and they also needed to be disclosed. These need to be closed and paid, to potentially improve your borrowing capacity.

Rental History

Lenders always look for potential purchasers who can manage their finances well. If you  have rental history, lenders would look into it and if you have been able to maintain paying rent on time and how you manage your finances and it’ll add to your character as a borrower.

Financial Past

In 2018, comprehensive credit card reporting was introduced that allows lenders to see more and clearer pictures of your credit history. This could be a positive as they can see your good financial attributes as well as your backlog or late payments. This means that they can see a full two years into your financial past.

Credit Card Limit

Lenders also take a look at your credit limit and it could affect your borrowing power even if you never used it. Though, it could only affect if your credit card limit is not proportion to your income.

Your First Home

Your home requirements may change due to unknown circumstances, you might turn it to an investment, or sell it to upgrade.  In the end, always remember to not treat your first home as your forever home.  You don’t have to live in your purchase but it will always be a good investment.

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