3 Tips On How You Can Increase Your Home Loan Serviceability

Dilleen Property Group 2022

As investors continue to build their property portfolios, it can be very easy to get stuck with serviceability. Below are some tips that will help you increase your serviceability for your next home loan:

Look at multiple lenders

It is important to not limit yourself to just one lender. You should look at using a mortgage broker who can assess your current situation, put your information into the data base and see which lender will be most appropriate. Often mortgage brokers have access to 20+ lenders. This will allow you to access multiple banking policies, in which some lenders may be more generous with their servicing.

Reduce your liabilities

Reducing your liabilities such as credit cards, car loans, personal loans will help in terms of increasing your serviceability. For example, if you have a credit card with a $10,000 limit, look to reduce the spending amount so that this will maximise you’re borrowing capacity. It is important to note that the bank will always assess you on the credit card limit, not the amount owing.

Job change

If you are an aggressive investor looking to accumulate multiple properties, a job change may be for you. A job that has a better pay rate can assist in increasing your serviceability to purchase your next property.

Disclaimer: This is not intended as legal, financial, or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature, you should seek advice from a qualified and registered legal practitioner or financial or investment adviser.