Liberty Says Planning Ahead is an Important Step in Home Loan Success

Home Loans

In today's market, the road to homeownership can be a long one, and many first-time buyers have a tough time breaking into the market. However, planning ahead can be the secret to home loan success, says Liberty.

While some house hunters would love to fast track their dreams of buying a home, Liberty says that it's important for borrowers to do their due diligence. For some, this could involve saving for a sufficient home loan deposit, while for others, it could mean taking the time to tidy up their finances. 

According to Head of Consumer Communications Heidi Armstrong, Liberty works closely with customers looking to buy property and understands the challenges that many face. "We support home buyers at all stages of their property journey — and those who take the time to get financially fit tend to experience the best outcomes."

When the time comes to secure a home loan, some buyers focus solely on saving for a deposit, but there is much more that goes into a credit assessment. As well as your income, expenses, assets and liabilities, a lender will also consider recent loan enquiries, credit card limits and other short-term debt. 

In particular, multiple credit enquiries and short-term debt like Buy Now Pay Later (BNPL) services can raise questions, as they can suggest that the borrower may struggle to manage their cashflow.

Armstrong says that repaying smaller debts and reducing credit limits and BNPL use can have many benefits for those seeking a home loan. "It's never too early to start planning for the future — but if you're planning to apply for a home loan in the next six to 12 months, now is the time to take action."

With a comprehensive understanding of what lenders look for, a mortgage broker such as a Liberty Adviser can support borrowers to prepare and can guide them through the application process.

Approved applicants only. Lending criteria apply. Fees and charges are payable. Liberty Financial Pty Ltd ACN 077 248 983 and Secure Funding Pty Ltd ABN 25 081 982 872 Australian Credit Licence 388133, together trading as Liberty Financial. 

Heidi Armstrong
Group Manager - Consumer Communications
P: +61 3 8635 8888

Source: Liberty Financial