LOOKING TO UNLOCK YOUR INCREASED EQUITY? NOW IS THE TIME TO GET YOUR DUCKS IN A ROW.
Here at Flametree Financial we recommend using this time a year to organise your finances (not just your taxes) and do some forward borrowing planning for the year ahead.
By now you would be well aware of how hot the property market is with the by-product being increased equity in our homes.
What can you do with your equity?:
- Start the renovations you have been dreaming of for years;
- Consolidate those messy expensive consumer debts into low home loan rates;
- Start or expand your property and/or investment portfolio;
- Help your children into the property market with a gifted deposit or parental guarantee;
- Or simply refinance your existing loan to get a better rate or structure to own your home sooner
The next step once you have decided on what you are using the equity for is to do a new financial year clean up to prepare the documents you need to apply for a loan:
- Check you are on top of all your credit card, personal loan, and consumer debt repayments – these need to be in good order to demonstrate your good borrowing behaviour.
- Consolidate your bank accounts – we often are well intentioned when we open accounts but don’t use them effectively. If you are using multiple accounts speak with us about attaching an offset to your mortgage.
- Is now the time to talk about a pay rise? Or if you just received one is the new amount reflected on your pay slips and bank account?
- Do you have other sources of income that might help increase your borrowing capacity? Ensure you have access to recent statements so it can be counted and talk to us about what type of evidence lenders need;
- Are all your identification documents current and accurate? Have you crossed checked that your maiden or married name matches all documents and/or that any middle names are included?
- Create a detailed list of living expenses. Are you being realistic about your costs? When is the last time you reviewed your services?
- Construction and structural renovations require plans and fixed price contracts - so start getting quotes if this is on the cards.
With lenders busier than ever before it is important and most of all necessary that applications are submitted with all the required documentation. Talk to us now to start your borrowing plan and explore your equity options.
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