Mortgage Minute: What banks take into consideration when lending
It’s Stew here from Loan Market and in this mortgage minute we check out what banks look at when considering how much they can lend you.
First things first, they will look at deposit size and this impacts how everything else is assessed.
If you have less than 20% deposit, then overtime, bonuses or commissions and boarding income are all not usually considered or counted towards your income.
Account conduct and credit rating are also crucial so it’s important to be mortgage conditioned prior to applying and have other debts or finance arrangements in order.
If you have 20% or more deposit then all forms of income are considered and the amount of uncommitted monthly income you need, essentially the spare cash each month after you have paid your bills, is considerably lower.
Being self-employed can have a big impact on how a lender assesses your application, as there are various costs we can add back onto your income, it’s not just what you pay yourself we consider.
Don’t worry though for more than two decades Loan Market has been helping Kiwis find the right loan from the largest panel of banks and lenders so give us a on 441 1307 and we can get you sorted.