Borrowing Capacity assessment

Looking to buy your first home?! You bad habits might undermine your dream.

Banks are now using actual living expenses since the royal commission. They will scrape every statement of every account; they will add up everything you’re spending on.
Gambling, Uber Eats and your buy now pay later debts can be the reason that your home loan gets declined by lenders.

HOW TO IMPROVE YOUR BORROWING CAPACITY
The more debt you have, the less the borrowing capacity is.
· Work to reduce your debt and credit card limits
· Develop good saving habits, how?! Well, you need to plan and budget.
· Ensure your credit report is up to your lender expectations.
Recently the Australian Prudential Regulation Authority’s move to increase the minimum interest rate buffer on home loans from 2.5 to 3 per cent would “impact people’s borrowing capacity