Consumer News

Maximise your borrowing capacity

27 July 2018

By Tim McKibbin, REINSW CEO

While the RBA recently announced interest rates will remain at 1.5 per cent, banks are required to, and will, review your home loan application to ensure you don’t get into difficulties with your repayment. So you must take charge of your financial position to maximise your borrowing capacity.

The simplest way to improve your financial position is to address your credit history, consolidate debt and save. 

Maintaining a clean credit history indicates you are a responsible borrower.

Giving up a credit card or consolidating debt makes reviewing your living expenses much simpler and can save you money.

And finally, save. A larger deposit means you borrow less and pay reduced or no Lenders Mortgage Insurance – a big saving.