At Australian Credit and Finance, we specialise in helping Australian’s find the right home loan and finance option to suit their needs. By using our calculators, you can understand how much your home loan repayments will be, what your borrowing power is and what you can expect to pay in stamp duty.
The are many factors that determine your ability to borrow money for your home purchase. Let’s look at a couple of the more important ones further.
Your Credit Score
Your credit history is collected and maintained by credit reference agencies like Veda Advantage. They record information such as any loan applications you apply for (regardless of whether you’re accepted or not), any defaults on loans, credit cards and any bankruptcy information.
This is why it’s important to not just run out and reapply for another loan if you’re turned down, as EVERYTHING is recorded.
In the past, only negative or neutral information was recorded, but with recent changes in 2014, positive credit reporting is also now included in your credit file. This gives a more accurate view of your ability to pay your debts.
Your credit file helps determine your credit score and any lender that you approach will generate their own automated credit score as well.
No two credit score’s are calculated the same, which can make it difficult to really know what each lender is looking for.
Other Factors That Affect Your Borrowing Capacity
Along with your credit history and credit file, there are other areas that can also affect your borrowing power, such as:
In the meantime, some of the factors that affect your borrowing capacity include:
- How much you earn
- What your financial commitments are
- How many other loans you have
- What credit card balances and limits do you have in place
- How much you have saved for a deposit
- Your savings history
Understanding how all these factors play a part in how much you can borrow is key to ensuring that you get the best deal.
Using a professional service like what we provide here at Australian Credit and Finance will ensure that you access the best rates and get offered the best deals.
Because we don’t provide the actual money ourselves, we can focus on the best deals for you. We’ll give you a range of options to choose from, providing access to the best lenders throughout Australia. We work with you until you are comfortable with the home finance option provided and make recommendations based on the information you provide to us – everything we do is tailored to meet YOUR situation.
We understand that everyone’s situation is different, that’s while you’ll find a broad range of options available to you when it comes to choosing your home finance.