Home Buyers Guide

Chapter 6: Choosing the Right Mortgage

Step 8: Things to do to help you get a mortgage

When you submit a mortgage application you should include a case summary highlighting the reasons why the bank should approve the mortgage.

It’s all about proving to them that lending you money is a ‘no brainer’ and that it makes good business sense for them.

Show evidence to prove that you can afford the mortgage repayments, that you’ll pay on time, and that there is no risk of you defaulting. So here’s how you can prove to the lender that you are a good risk:

Show the ability to pay the mortgage:

• Rent

If you rent a property or a room in one, get evidence of the rent you are paying. Your rent should go through your
bank account either by direct debit or cheque (rather than paying in cash), because that creates a ‘positive’ paper trail.

You’ll be seen as less of a risk by the lenders because if you pay rent on time you are lightly to pay your mortgage on time too.

• Make regular savings

The banks love people with a regular savings history. Again, even if it’s only for a short period, showing your ability to save money will help.

• Make sure you pay your credit card and loans payments on time.

It’s pretty straight forward – if you are late with your credit card payment or your car loan payment, how lightly are you to pay your mortgage on time?

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