Need a loan? You’re not alone

IT MAY be easier to get a home loan than you think.

“If you’ve never had a loan before, start by making a verbal approach to the bank where you already have a savings account,” Bellarine Property managing director Christian Bartley said.

“They are the most likely to be interested in your case. If they reject your initial approach, don’t give up. Agents can cite many examples of successful home buyers who thought their prospects were hopeless after their first interview with a bank or building society.”

He said first impressions can help your case and it’s a good idea to show you mean business on your first visit.

“Take a folder with all the documents pertinent to the application. Include pay slips or other proof of income. Take with you evidence of any debts, credit card statements showing what is owing, savings records, and documents pertaining to any assets such as a car or business.”

Mr Bartley said if it was your first home, it was worth using the documentation from any big item you’ve paid off over time to show the bank you’re good at budgeting for repayments.

“Even that hi-fi gear you bought while you were still at school or the computer or second-hand car you bought when you got your first job could be relevant. Ask how much you can borrow and what your re-payments are likely to be so you can work out what sort of property you can afford.”

He said it was worth investigating a mortgage offset account which, used wisely, would reduce the interest paid on the amount borrowed.

“If you pay your wages into the mortgage account each week or month, the balance increases and this money is offset against the money owing on the mortgage. You pay all your bills on a credit card, and pay the amount owing once a month before any interest is charged. It’s a great idea for people who can control their use of their credit card and don’t see it as carte blanche for spending.”

For more information, phone Christian Bartley on 0410 695 325, email [email protected] or head to bellarineproperty.com.au.