Shopping for home loans, especially if you are a first time
home buyer, can be very intimidating. In Australia, this is
even more true than it has been in the past because of Australia's
high housing prices. However, that doesn't mean you won't
be able to secure a home loan. Here are a couple of tips for
getting the best home loans, investment loans, construction
loans and low doc loans.
Pay off your credit card debts now.
It's a common mistake to think that showing that you have
a high credit card balance but are making regular, on-time
payments will actually help your chances in getting a home
loan. With a high balance like $20,000, you may be limiting
your borrowing power by as much as $100,000 or more. Instead,
reduce your debts by getting a credit card consolidation
loan or transferring your balance to an interest-free card.
Put your tax return into your savings account.
Instead of using your next tax return to take a holidy, use
it to pay off some debts or else put it towards the money
you're saving for a new home. If you're trying to save $20,000
for a home, a few tax returns of $1,000 or more can make a
big difference when applying for a home loan. Focus on paying
down debts before focusing on saving money. If you have big
debts, especially high-interest credit card debt, you should
focus on paying those debts off before you focus on saving
money. Presuming that you have at least some money set aside
in a savings account for emergencies, you are far better off
to put an extra 10% of your income towards your debt each
month than putting that 10% towards saving for a new home.
By following these tips, you'll be well on your way towards
securing the home loan you need for a great new home. Don't
let today's housing market intimidate you: Be wise with your
debts and your savings and you'll definitely find the right
Now for home Loans