How to Increase Your Borrowing Power？
The best way to increase your borrowing power is to demonstrate to the lender that you’re financially sound and can meet your loan repayments.
Today let's discuss some other ways to increase your mortgage borrowing power.
1. Get Rid of Unnecessary Debts and Credit Cards
How much debt you currently have will influence your borrowing power to a great extent. Having unnecessary debt such as credit cards that you don’t even use could significantly deter a lender from the amount they’re willing to lend you.
2. Reduce Expenses
Lenders want to know that you can comfortably meet your repayments and if they sense you might be at risk of mortgage repayments, this can significantly affect your borrowing power. It’s smart to regularly review your expenses and see if you can cut down on any non-essential expenses, such as gym membership you never use.
3.Increase Savings and Income
Having a good saving history can demonstrate to the lender that you have good financial position. At the same time, the larger the deposit, the lower the LVR, and generally the lower the interest rate. And this can also improve your borrowing capacity.
Increasing your income is another great way to increase your borrowing power. Picking up an extra shift at work, earning commissions, or renting out your spare room could all help with your borrowing power.
4. Choose the Right Lender
Every bank and financial institution has its own unique lending policy. And this might have a big impact on your borrowing power.
Compared to big four banks, some smaller banks may be better in terms of borrowing power. If you couldn't get the loan limit that you want from big four banks, you might as well try some smaller banks. Contact your professional mortgage brokers at MoreMore Finance to get more information.
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