With interest rates at an all-time low but with banks tightening their lending requirements there are some simple strategies to ensure your serviceability doesn’t stop you from gaining finance
- Cancel any credit cards that you don’t need
Even if your credit card isn’t being used, the banks will take 3% of the limit as funds at your disposal to service a loan. - Consolidate unsecured debts
Alternatively, if you have outstanding balances on different credit cards or personal loans, it is wise to consolidate these into your mortgage. - Ensure your tax returns are lodge on time
In some circumstances two recent payslips will not be sufficient to a lender therefore being able to provide recent years’ tax returns will provide an accurate serviceability picture.