
- In Bee Savvy - Getting the most out of your loan, First things first - Steps before applying for finance, Getting ahead - How to improve your finances, Home sweet home - first home owner finance
How Your Debts Affect Your Home Loan
Most people are aware that having too many unsecured debts, such as credit cards or personal loans, can have an impact on your ability to obtain the home loan you desire.
Why The Amount You Can Borrow Will Drop
Lenders are required to establish whether you can afford a home or investment property loan, before granting you an approval. They will look at how much you are earning, any proposed rental income, as well as your ongoing expenditure, including any loans or credit cards that you hold.
They will look at your credit limit amount, not just the amount that you owe. As the limit indicates the maximum amount of debt that you could go into at any time, without needing to make any new applications.

In some cases, they may even add a buffer, thus increasing the amount they calculate to be payable on any personal or car loans that you hold.
They will also add a buffer to calculate your existing and proposed home loan/s. This is to ensure that you can still pay your home loan if interest rates were to rise.
All of these procedures have a large impact on determining how much you will be able to borrow. For example, one lender, (as they all differ with their calculations), will reduce the amount that you can borrow on your home loan, by $44,000 if you hold a credit card with a $10,000 limit.
Maximise your chance of approval with Bee Finance Savvy
If you want to buy a property, and need a home loan, speak to Bee Finance Savvy. We can also help you if you

want to refinance an existing mortgage. Our 98% home loan approval rating means that we will maximise your chance of approval.
We have relationships with over 30 lenders, and can compare your financial situation against a variety of lenders criteria, so that you don’t have to attempt to do this research yourself.
For an obligation free assessment, all you need to do is get in touch with our fantastic broker Desiree. She’s based in the Sutherland Shire, Sydney, but works with client from all over Australia.
To find out more, call or text Desiree on 0455 131 937 or 1300 140 554. Desiree can also be reached at enquiries@beefinancesavvy.com.au . You can also fill out the contact us form on this site.
Want to hear from just some of our happy customers? Take a look at our reviews on WOMO https://www.wordofmouth.com.au/reviews/bee-finance-savvy-miranda