If buying property is on your radar for later this year, one of the smartest times to get your finance organised is before you find the property.
Too many buyers wait until they have fallen in love with a home before speaking to a broker. By then, the pressure is already on.
Getting finance ready early can help you understand:
- How much you may be able to borrow
- What your deposit position looks like
- Whether there are any issues to address first
- What repayments may look like
- Which lenders may suit your circumstances
- Whether your current loan structure is helping or holding you back
It also means you can move with more confidence when the right opportunity comes along.
A pre-approval is not a guarantee of final approval, but it can be a valuable step in understanding your position before you start making offers or attending auctions.
Thinking about buying in the next few months?
Get in touch with us and let’s get your finance position clear.
“My bank knocked me back. How did you get it approved somewhere else?”
Banks and lenders all have their own internal policies.
Same applicant, same income, same property, but depending on who is assessing the file, the outcome can be completely different.
Here are a few areas where this plays out regularly.
How your income is treated
If you are self-employed, work on commission, or earn bonuses, some lenders may count that income in full. Others may shade it, average it over two years, or exclude it altogether. That difference alone can significantly change your borrowing power.
Credit history tolerance
Some lenders may decline an application automatically if there is a mark on your credit file. Others may look at the context, including what happened, when it happened, and what has changed since. Same credit history, very different outcome.
Employment type and length
Just started a new job?
Some lenders may require you to be out of probation. Others may consider your application from day one, particularly if you are working in the same industry.
The property itself
Lenders also have different appetites for certain property types, locations, and sizes. A small apartment in a regional area might be perfectly acceptable to one lender and flagged by another. A broker’s job is to understand those differences and match your specific situation with the lender most likely to suit your circumstances.
A declined application is not always a dead end. Sometimes it simply means you were in front of the wrong lender.
Have you been knocked back by your bank?
Get in touch with us and let’s talk through your options.
