Looking to borrow more from the bank, your first home or your next investment property?

Understanding what banks are looking for is key to increasing your borrowing power.  

Let’s break it down into the 3 C’s: 

✅ 𝗖𝗿𝗲𝗱𝗶𝘁 s𝗰𝗼𝗿𝗲 

Your credit score reflects your financial history and how reliably you’ve managed debt in the past. Here’s how to strengthen it: 

⦿  Pay all bills on time - late payments can harm your score and reduce your chances of approval. 

⦿  Avoid applying for multiple loans in a short period, as this can raise red flags for lenders. 

⦿  Review your credit report regularly to correct any errors that could lower your score. 

✅ 𝗖𝗮𝗽𝗮𝗰𝗶𝘁𝘆 𝘁𝗼 𝗥𝗲𝗽𝗮𝘆 

Lenders want to see if you have enough income to comfortably meet loan repayments. Boost your borrowing power by improving your capacity: 

⦿  Increase your income through a salary increase or additional income streams, like investment properties or freelance work. 

⦿  Reduce existing debts to improve your debt-to-income ratio, making you more appealing to lenders. 

⦿  Maintain stable employment - lenders prefer borrowers with consistent and long-term income sources. 

✅ 𝗖𝗼𝗹𝗹𝗮𝘁𝗲𝗿𝗮𝗹 (𝗦𝗲𝗰𝘂𝗿𝗶𝘁𝘆) 

Banks assess the value of the assets you’re using as collateral, such as the property you want to buy or an existing one. They may also consider: 

⦿  A larger deposit - the more you can put down upfront, the less risk you pose to the lender. 

⦿  Equity in existing properties - if you already own property, you can use the equity to secure additional funds. 

⦿ A quality property in a great location is more favourable to lenders.  

TEAM SONI CAN HELP

By focusing on these 3 C’s, you can strengthen your loan application and increase the amount you can borrow. 

Looking for personalized guidance for property investment? #TeamSONI can help! We can help you navigate your options and create a strategy that fits your goals. 

Book your consultation today!