How much I can borrow

Have you noticed the number of services that are now charged via 'subscription', rather than an outright purchase. Providers no longer refer to leases, or contracts, but rather “Opt out” subscriptions.

Due to recent technology trends like Netflix, stan, spotify it seems we are less adverse to signing up a subscription than ever before.

Because these are set up on a direct debit, or an automatic payment, it seems they are hidden expenses that rarely get the review they actually require.

As a home loan mortgage broker we work with first home buyers and home loan refinances all the time. These hidden subscriptions can add up very quickly.

Before going to see your mortgage broker, have a look over 3 months bank statements and try to section your expenses into needs, wants, Must cancel and must pause categories.

Then action the cancel and pause categories as soon as you can.

As a mortgage broker and home loan consultant, we see a lot of different spending habits with a diverse range of spending levels.

When applying for a home loan, the lenders require you to demonstrate the affordability of your loan and your financial acumen. Lenders are looking for responsible borrowers and positive financial track records.

How can you demonstrate this? By showing us bank statements that reflect a stringent spending history and positive saving strategy. Your bank statements tell the story....

In today's tightened lending environment, the true value of your mortgage broker is in their ability to ask you the right questions and package your story to the right lender. Failing to plan is planning to fail and each time you apply for credit, a little footprint is left on your credit file. This can, over time, lower your credit score, which can impact your future borrowing capacity. It's therefore important to submit an application that is air tight and super right.

Living expenses and savings can really affect your borrowing capacity