how to apply for a mortgage

Buying a property will probably be the biggest financial transaction you make during your lifetime, so it pays to ensure that your application is not only as strong as possible, but your application is seen by the right people too.

We should be clear here though - not all banks are equal. At any given time some will have stricter lending policies than others, some will offer more attractive interest rates, terms and ‘cashback’ for certain deals etc. And this information isn’t advertised!
 
How, as the customer, you are expected to know which bank to approach is hard to fathom. Unless you have a mortgage broker in your corner of course!
 
By ‘employing’ (and I use that term loosely as the vast majority do not charge the customer for their services) a qualified, experienced mortgage broker you can take advantage of their inside knowledge. They may not be bank employees, but they are updated on the banks new policies, aims and criteria regularly - and this can really help ensure your application is given the best chances of approval.
 
A mortgage broker can ensure the your application lands on the right desk (of the right bank) depending on your needs/plans. They can also ensure you application is presented in the best light. It is in their best interests to ensure your ‘case’ is as strong as possible, and if that means fighting on your behalf then that’s what they’ll do. Is a salaried bank employee likely to fight on your behalf to the same extent? I doubt that very much!...
 
Mortgage brokers have built up relationships with all the main banks, and this is a massive advantage for the customer. How would you know if you are being offered the best deal if you only approach your current bank? An experienced mortgage broker can approach all of them - at no cost to you - in no time at all.
 
By having an experienced negotiator, who has seen lots of similar deals (so they know what can be achieved) you are putting yourself in the strongest possible position.
 
So, the first step is to engage a mortgage broker.
 
Key Elements of a Strong Application
 
Filling in the forms is all pretty straightforward, but if you’re not quite at that stage yet there are a few things you can do to ensure your application will be viewed as favourably as possible.
 

• Account Conduct - It seems trivial, but your account conduct can be very important. Those late credit card payments, and unarranged overdrafts/excesses count against you - so avoid them for 3mths before applying if you can.
• Kerb Your Spending - spending every cent you earn does not paint you in a good light from a banking perspective. Banks love to see people who live within their means. Cut back on the things you don’t need and put the extra you save into a separate savings account. Banks love that! Do this as early as possible so when it comes time to apply you have proven savings record you can demonstrate to the banks.
• Increase Your Income - a few dollars more per hour makes a big difference to your borrowing power, so if you haven’t asked a for a pay rise recently and you can justify one arrange a meeting with the boss and ask!
• Include All Your Information - if you have several credit cards, loans, accounts etc you need to include them all. The banks check through all your details/statements and if they spot some that aren’t accounted for it isn’t a great look! If you’ve had credit issues previously it is best to be upfront about these too. Again, these will be uncovered so it is better to be on the front foot with the info.

 
A great way to start the whole process is to touch base with us and let us know your plans. Whether you are months away from buying or you’ve just found the perfect house it is never too late to get assistance, and some expert advice.​

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