I Need To Pay Off All My Other Expenses Before I Can Apply For A Home Loan?
This is a first home buyer myth. And it’s not true! You can still secure a home loan if you have an existing student study debt,
or a car loan.
When a lender is assessing your ability to service a loan, they certainly look at your current expenses such as any outstanding loans or credit card limits – but just because you might have one or both of these expenses, does not mean you won’t get your loan approved. Of course the less debt you have will mean more surplus income to enjoy your new home and perhaps make improvements to it faster with your cash flow.
And the bank may lend you more if you do not have other personal debts to service, but everyone’s situation is different so we need to look at your situation and can run your numbers through our software to gauge your loan limit with or without the debt in place.
Contact us today to have a chat about whether you can start looking now.
Patrick Cranshaw, a Certified Mortgage Professional for over 21 years, founded North Brisbane Home Loans in 2002. His career began with ANZ Bank in New Zealand, where he progressed over 16 years to a Business Banking role in Virginia. After moving to Brisbane in 2000, Patrick led the QLD market for a home loan agency, helped set up the REMAX Real Estate Finance division, and practiced as a broker.
