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When lenders assess your application they will want to see that you have Repayment Capacity. This means you are able to prove to the lender that you can easily meet the repayments for the proposed loan.

Each month you are required to prove that you have saved an amount equal to the expected repayments for the proposed loan. This amount can be a combination of saved funds and consistent rental payments. The lender will generally look back over 6 months of savings account statements and rental ledgers.

It is a good idea to have a separate savings account which you consistently add to each month. This will make it easier for you to monitor your savings and for the lender to identify Repayment Capacity has been met.

If you are renting, ensure rental payments are always made on time or in advance. A rental ledger from your letting agent and bank statements will be required from the lender to prove rental payments have been consistently met.

If you are thinking about purchasing a new home and would like more information regarding Repayment Capacity or have any other questions please contact us at Territory Loans.

The ‘Buy Now Pay Later’ mentality, which is growing in popularity, could be negatively impacting on your chance of owing your own home if this practice is not managed correctly.

Providers such as AfterPay and Zip Pay pay the merchant for the goods on behalf of the customer. The customer is able to obtain the goods straight away and then pay the debt off through instalments. Being able to obtain the goods straight away, instead of saving the money first, is a very tempting offer but can often leave customers with bigger debt problems if they are unable to meet repayment obligations.

When a Lender is assessing a customers’ savings and spending habits they may question the customers ability to meet loan repayments and manage their money if the customer is always buying on credit, especially if the repayments are not always made on time.

If you are looking at purchasing a new home it is important to manage your expenses well in advance so you can show the bank that you can save and manage your finances and therefore be able to meet home loan repayments.

If you are looking at buying a property and don’t know where to start come and see us at Territory Loans.

With interest rates being so low at the moment now is a good time to review your financial situation.

Are you paying high interest on an unsecured personal loan or credit cards? If you have enough equity in your home you may be able to roll them into your home loan to free up some more income and reduce the amount of interest you are paying. With credit card interest being as high as 20% and some even higher, it may make sense to roll this extra debt into your home loan as your home loan would have a much lower interest rate. This will reduce the amount of interest you are charged and in turn reduce your monthly repayments. Then if you have extra cash you can pay it towards your home loan to reduce the term of the loan and save on interest.

Call us or come in and see us and we will be happy to review your situation.

In May Angelique and Kerry were fortunate enought to be able to attend the 2015 MFAA National Convention in Melbourne.  The event presented a number of highly regarded motivational speakers as well as providing numerous learning and networking opportunities.

Highlights included:

• McGrath Foundation charity luncheon held by Glenn McGrath and supported by Commonwealth Bank.
• Gala dinner and networking events.
• Inspirational 'Frontline Leadership' presentation from Benjamin Roberts-Smith VC MG, recipient of both the Victoria Cross Medal and Medal for Gallantry.
• Co-founder of 'Thankyou', Daniel Flynn, spoke about the challenges and successes of their enterprise which funds safe water, food and hygience projects in less fortunate countries.
• The SUMO guy, Paul McGee, discussed leadership, change and the SUMO principles of 'Shut Up, Move On'.

• MFAA National Convention 2015

Angelique with Glenn McGrath

Angelique and Kerry at the Gala Dinner

Benjamin Roberts-Smith VC MG

Daniel Flynn

Paul McGee

Meet the delightful Johnson family who came to see us last year to purchase a new house.  Thank you for welcoming us into your beautiful home.

• Making Dreams

No. There is no charge to come and see us at any time. When you do a loan with us the bank pays us a commission but this does not mean you pay a higher rate or any additional costs. We are independent of any particular bank and we come up with the best option to suit your needs.