6 tips to boost your chances of getting a mortgage

To get you started on your mortgage journey today, this article explores six tips which can help you boost your chances of getting a mortgage. 

1. Credit history check

A significant factor mortgage lenders will check is your credit history. Therefore, it is important to get a free check of your credit history online. If you spot something in your credit history that isn’t right, you can try to get it fixed. 

If you hold a credit score between 500 and 700, then you are considered average and your chance of getting a mortgage will depend on other factors. Holding a credit score over 700 will be well received by mortgage lenders. If you happen to have a score over 900, then you are actually in the top 9.2%. 

2. Limit your debt

Mortgage lenders will look into your Debt-to-Income ratio to measure your mortgage eligibility. The less debt you have the more likely you will be eligible for a mortgage. It should be noted that lenders prefer a debt-to-income ratio lower than 36%.

3. Income vs expenses

Mortgage lenders are looking for you to have a surplus of income once your expenses have been deducted. The larger your surplus, the more likely you are to be eligible for a mortgage. 

4. Hire a mortgage broker

Mortgage brokers provide insights about market trends,  tips on improving your credit score, and other aspects of the home-buying process. Hiring a mortgage broker can increase your chances of getting a mortgage with their professional help.  

If you are looking to find a mortgage broker to help you buy a home or refinance an existing mortgage, then look no further as Simpler can offer the entire process online.

5. Demonstrate savings

By showcasing that you are capable of regularly saving, you are proving that you know how to manage your money, which mortgage lenders will find attractive. 

6. Employment history

Did you know that the more stable your employment history is, the more eligible you will be for a mortgage? Consider changing jobs less frequently, to showcase a steady employment history.  

If you are self-employed the bank might request at least one end-of-year financial record.  

Looking to find a mortgage broker to help you buy a home or refinance an existing mortgage? We are proud to have some of the best mortgage advisors in Auckland New Zealand on our friendly and professional team. Simpler will work with you to understand your financial situation and guide you through the mortgage process. No matter where you’re based, our team is here to help you!

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