Welcome to another episode of Build Out West podcast with Tony & Catherine! In this episode, we’re diving into a crucial topic for homebuyers: How to Increase Your Borrowing Capacity for a Mortgage with guest finance broker Adam Burstein.
If you’re looking to buy a home or invest in property, getting the largest possible mortgage can be the key to securing the property of your dreams. But how do you boost your borrowing power? We’ve got the answers! Tune in as we cover:
Key Topics:
- Understand Your Financial Position
- Importance of reviewing your income, debts, and expenses
- Tools and resources to assess where you stand financially
Increase Your Income
- How side gigs, raises, or bonuses can impact your borrowing capacity
- Documenting extra income for mortgage applications
Reduce Debt and Liabilities
- Strategies for paying down high-interest debts like credit cards and personal loans
- The impact of your debt-to-income ratio (DTI) on borrowing capacity
Clean Up Your Credit Score
- Steps to improve your credit score
- How lenders view your credit history and why it matters for mortgages
Minimize Your Expenses
- Identifying areas where you can cut back on spending
- How lifestyle changes (e.g., reducing discretionary spending) improve your financial profile
Use a Guarantor or Co-Borrower
- When and how to use a guarantor to increase your borrowing power
- The benefits and risks of joint mortgage applications with co-borrowers
Shop Around for Lenders
- Why different lenders have varying lending criteria and how to take advantage of that
- The role of mortgage brokers in finding flexible borrowing options
Extend Your Loan Term
- How lengthening your loan term affects repayments and borrowing capacity
- Pros and cons of choosing a longer mortgage term
Consider Lender Incentives and Government Schemes
- Overview of current schemes that may boost your borrowing power (e.g., First Home Buyer incentives, low-deposit options)
- How to leverage government grants or programs to stretch your budget
Listener Takeaways:
By the end of this episode, you’ll be armed with actionable tips to maximize your mortgage borrowing capacity, whether you’re looking to buy your first home or add to your property portfolio. We’ll also share real-life success stories from listeners who boosted their borrowing power and secured their dream properties!
Don’t forget to subscribe, share this episode with a friend, and leave us a review! Follow us for more insights on property investing, smart borrowing, and financial planning.
Resources Mentioned:
- Budgeting tools and debt-reduction calculators
- Credit repair services and credit score monitoring
- Government home-buying schemes and programs
About Build Out West Podcast:
We created Build Out West Podcast to educate people about home building, and provide valuable information related to the builder broker game. Our industry experience gives us a unique insight into the nuances of builder relations and how it ties up to the other aspects of the build including land, and finances. Different markets and changes need different builders. Our industry linkages give us the ability to match you with the right builder for the job.
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