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Finance for First Home Buyers

It's not what you SAVED… It's what you've SPENT!

That's right… It's not what you saved it's what you've spent that is hurting first home buyers in 2019.

If you've chatted to a great mortgage broker lately, you've probably heard them bang on about 'living expenses'.

Now, this isn't because they like the sound of their own voice. It's because the banks are seriously scrutinising every penny you spend.

It's no joke.

The big banks are under pressure (a lot of pressure) to prove they are adhering to responsible lending guidelines. Pretty much they need to ensure that if they give you a home loan you can afford to pay it back, without it causing you any undue financial stress.

You may not think this is a good thing, but it is. If you have to fudge your living expense figures in order to qualify for a home loan, are you really in the best position to comfortably meet your repayments – without it affecting your quality of life?

Start looking at where your money is going. How much you're spending on unnecessary purchases or outings. This recent article talks about how couples are having to justify $26 swimming lessons for their children, overseas holidays and how many times they order Uber Eats each month.

How people are choosing to spend their money means the difference between getting home loan approval or not.

It's a hard time of year to reign in your spending, but if you're still saving your deposit and hoping to apply for a home loan within the next 3-6 months, start being a little more frugal. Ease up on your takeaways or nights out, reduce your credit card debt (even cut a few of them up!) and stop with the 'After-Pay' – banks hate this!

Your Bank statements effectively tell a short story about who you are and how you spend your money, so do everything you can to make sure it's a good story with a happy ending.

If you haven't yet chatted to an experienced mortgage broker and you'd like to give yourself the best chance of home loan approval, feel free to reach out for recommendations of brokers who specialise in helping first home buyers in your area.

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