Home Buyers Guide

Chapter 6: Choosing the Right Mortgage

• Try to clear off existing loans

It’s important to talk to a mortgage consultant before you do this, (as in some cases it doesn’t make sense to pay off your loans before you get your mortgage), but generally speaking, having existing loans will significantly reduce the amount you can borrow, so you may be able to borrow a lot more if you have no loans.

For example a €400 per month car loan can reduce what you could borrow by more than €65,000.

Step 9: Things to avoid when you are looking for a mortgage

• Make sure you don’t take out any new finance

For the same reason that we say you should consider paying off your existing loans, we’d suggest that you don’t take out any new finance.

Lenders will often do a credit search just before they issue your mortgage cheque. If you have borrowed money in the mean time, it could put getting your mortgage at risk.

• Don’t Quit Your Job

If at all possible, you shouldn’t change jobs before you take out your mortgage, as most lenders will not offer
mortgages to people who have just started a job or are on a probationary period.

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