Banks are tightening their lending criteria, which means it has become more important than ever to understand how to boost your chances of getting your home loan approved.

As your mortgage broker it is our job to monitor the changing environment and understand how this impacts our clients, which is why we have compiled these useful strategies to give you the best chance of securing a home loan.

Check your credit is squeaky clean

Your credit file contains information about your repayment history across a full range of accounts, from credit cards and loans to mobile phones and utilities. Always check your credit file in advance of a home loan application to see how you look on paper and to take steps to fix up discrepancies or pay off debts.

Fill out all paperwork correctly

It may seem obvious but plenty of forms, including application forms are incorrectly or inadequately completed, leading to rejection or processing delays. Not declaring all your debts, for example, may lead to home loan rejection because lenders will find out anyway and penalise you for withholding information. It’s important to give exact and honest answers all the way through the application process, including your address history and spending habits.

Demonstrate a reliable income

You need to be able to demonstrate that you can comfortably service the debt and continue to do so in event of an interest rate rise. This means holding off on any career changes because lenders want to see you have a reliable and consistent income via documentation like payslips, group certificates and tax returns. You will also be asked for proof of genuine savings, which often takes the form of bank statements showing regular contributions over a period of several months.

Hold off on multiple applications

Submitting applications for several different lenders at once will show on your credit report and is frowned upon by potential lenders. Do your research and decide on which lender you are going to go with before you submit a home loan application.

Save a larger deposit

The larger your deposit, the more likely you are to be approved. Although the terms and conditions of each home loan are different, most lenders prefer you not to borrow more than 80% of the value of a property (80% LVR). A larger deposit will also help you avoid paying lenders mortgage insurance (LMI).

Contact us for more details about how your home loan application can be tailored to the criteria of individual lenders.

Statement by Glenn Stevens, Governor: Monetary Policy DecisionAt its meeting today, the Board decided to lower the cash rate by 25 basis points to 1.50 per cent, effective 3 August 2016.
The global economy is continuing to grow, at a lower than average pace. Several advanced economies have recorded improved conditions over the past year, but conditions have become more difficult for a number of emerging market economies. Actions by Chinese policymakers are supporting the near-term growth outlook, but the underlying pace of China's growth appears to be moderating.
Commodity prices are above recent lows, but this follows very substantial declines over the past couple of years. Australia's terms of trade remain much lower than they had been in recent years.
Financial markets have continued to function effectively. Funding costs for high-quality borrowers remain low and, globally, monetary policy remains remarkably accommodative.
In Australia, recent data suggest that overall growth is continuing at a moderate pace, despite a very large decline in business investment. Other areas of domestic demand, as well as exports, have been expanding at a pace at or above trend. Labour market indicators continue to be somewhat mixed, but are consistent with a modest pace of expansion in employment in the near term. 
Recent data confirm that inflation remains quite low. Given very subdued growth in labour costs and very low cost pressures elsewhere in the world, this is expected to remain the case for some time.
Low interest rates have been supporting domestic demand and the lower exchange rate since 2013 is helping the traded sector. Financial institutions are in a position to lend for worthwhile purposes. These factors are all assisting the economy to make the necessary economic adjustments, though an appreciating exchange rate could complicate this.
Supervisory measures have strengthened lending standards in the housing market. Separately, a number of lenders are also taking a more cautious attitude to lending in certain segments. The most recent information suggests that dwelling prices have been rising only moderately over the course of this year, with considerable supply of apartments scheduled to come on stream over the next couple of years, particularly in the eastern capital cities. Growth in lending for housing purposes has slowed a little this year. All this suggests that the likelihood of lower interest rates exacerbating risks in the housing market has diminished. 
Taking all these considerations into account, the Board judged that prospects for sustainable growth in the economy, with inflation returning to target over time, would be improved by easing monetary policy at this meeting.

Statement by Glenn Stevens, Governor: Monetary Policy Decision

​At its meeting today, the Board decided to leave the cash rate unchanged at 1.75 per cent.

The global economy is continuing to grow, at a lower than average pace. Several advanced economies have recorded improved conditions over the past year, but conditions have become more difficult for a number of emerging market economies. China's growth rate has moderated further, though recent actions by Chinese policymakers are supporting the near-term outlook.

Commodity prices are above recent lows, but this follows very substantial declines over the past couple of years. Australia's terms of trade remain much lower than they had been in recent years.

Financial markets have been volatile recently as investors have re-priced assets after the UK referendum. But most markets have continued to function effectively. Funding costs for high-quality borrowers remain low and, globally, monetary policy remains remarkably accommodative. Any effects of the referendum outcome on global economic activity remain to be seen and, outside the effects on the UK economy itself, may be hard to discern.

In Australia, recent data suggest overall growth is continuing, despite a very large decline in business investment. Other areas of domestic demand, as well as exports, have been expanding at a pace at or above trend. Labour market indicators have been more mixed of late, but are consistent with a modest pace of expansion in employment in the near term.

Inflation has been quite low. Given very subdued growth in labour costs and very low cost pressures elsewhere in the world, this is expected to remain the case for some time.

Low interest rates have been supporting domestic demand and the lower exchange rate since 2013 is helping the traded sector. Financial institutions are in a position to lend and credit growth has been moderate. These factors are all assisting the economy to make the necessary economic adjustments, though an appreciating exchange rate could complicate this.

Indications are that the effects of supervisory measures have strengthened lending standards in the housing market. Separately, a number of lenders are also taking a more cautious attitude to lending in certain segments. Dwelling prices have risen again in many parts of the country over recent months. But considerable supply of apartments is scheduled to come on stream over the next couple of years, particularly in the eastern capital cities.

Taking account of the available information, the Board judged that holding monetary policy steady would be prudent at this meeting. Over the period ahead, further information should allow the Board to refine its assessment of the outlook for growth and inflation and to make any adjustment to the stance of policy that may be appropriate.

If selling your property was an exam, scoring 100 per cent would bring the reward of less stress and more money. Here’s a cheat sheet of mistakes to avoid in order to pass your exam with flying colours!
​      1. Don’t Wrongly Price Your Property
Over-pricing or under-pricing is a common mistake that occurs when property owners fail to do sufficient research about what buyers are looking for and what they are expecting to pay. Look at comparable sales in your area and use this data when you are discussing prices with your real estate agent.

       2. Not tidy up
Mess, dirt and clutter turns buyers off because it makes it harder for them to envisage themselves living in the property. Remove junk, personal items and family photos off countertops, shelves and walls.

       3. Don’t Spend too much on renovations
While a coat of paint or re-carpeting can help improve the value of your property, it’s never a good idea to spend considerable money on a major renovation that you may never get a return on.
Ways you can improve the presentation of your property without spending a lot of money include de-cluttering, cleaning windows, re-grouting bathroom tiles, adding plants to an outdoor space, fitting a new benchtop or splashback in the kitchen, installing new taps or a decorative light fitting in the bathroom.

      4. Don’t Hide problems
When you cover up a problem rather than fix it, the risk is that when the buyer finds out, they will quickly become suspicious about other problems the house might have. Your best strategy is to either repair problems properly or declare them outright.

      5. Don’t Sell your home empty
Homes devoid of furniture often look smaller and less appealing. It’s hard for potential buyers to imagine themselves living in an empty home or their furniture fitting into the space.
Professionally styling your home for sale (also known as property staging) is a great option to consider, with anecdotal evidence suggesting it can help sell your property faster and for a better price.
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      6. Don’t Get emotionally involved
Thinking with your heart, not your head, can often lead to hasty decisions when selling. It is important to detach yourself emotionally and start viewing your home as though you were a potential buyer. Choose an experienced and reputable real estate agent and be prepared to take their advice on board and allow them to lead negotiations with potential buyers.
Contact us to find out what lending options exist to help guide your way through the process of buying and selling.

At its meeting today, the Board decided to lower the cash rate by 25 basis points to 1.75 per cent, effective 4 May 2016. This follows information showing inflationary pressures are lower than expected.

The global economy is continuing to grow, though at a slightly lower pace than earlier expected, with forecasts having been revised down a little further recently. While several advanced economies have recorded improved conditions over the past year, conditions have become more difficult for a number of emerging market economies. China's growth rate moderated further in the first part of the year, though recent actions by Chinese policymakers are supporting the near-term outlook.

Commodity prices have firmed noticeably from recent lows, but this follows very substantial declines over the past couple of years. Australia's terms of trade remain much lower than they had been in recent years.

Sentiment in financial markets has improved, after a period of heightened volatility early in the year. However, uncertainty about the global economic outlook and policy settings among the major jurisdictions continues. Funding costs for high-quality borrowers remain very low and, globally, monetary policy remains remarkably accommodative.

In Australia, the available information suggests that the economy is continuing to rebalance following the mining investment boom. GDP growth picked up over 2015, particularly in the second half of the year, and the labour market improved. Indications are that growth is continuing in 2016, though probably at a more moderate pace. Labour market indicators have been more mixed of late.

Inflation has been quite low for some time and recent data were unexpectedly low. While the quarterly data contain some temporary factors, these results, together with ongoing very subdued growth in labour costs and very low cost pressures elsewhere in the world, point to a lower outlook for inflation than previously forecast.

Monetary policy has been accommodative for quite some time. Low interest rates have been supporting demand and the lower exchange rate overall has helped the traded sector. Credit growth to households continues at a moderate pace, while that to businesses has picked up over the past year or so. These factors are all assisting the economy to make the necessary economic adjustments, though an appreciating exchange rate could complicate this.

In reaching today's decision, the Board took careful note of developments in the housing market, where indications are that the effects of supervisory measures are strengthening lending standards and that price pressures have tended to abate. At present, the potential risks of lower interest rates in this area are less than they were a year ago.
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Taking all these considerations into account, the Board judged that prospects for sustainable growth in the economy, with inflation returning to target over time, would be improved by easing monetary policy at this meeting.

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We are pleased to provide you with our latest Economic Insights report on Australia's Budget 2016/17, produced by Craig James, CommSec Chief Economist and Savanth Sabastian, CommSec Economist.

At a glance.....

• Budget deficit of $37.1 billion forecast for 2016/17
• Small business tax rate will be lowered to 27.5%
• Small business threshold increased from $2 million to $10 million
• Middle income tax bracket to rise from $80,000 to $87,000
• Further crackdown on multinational tax avoidance
• Changes to concessional superannuation
• Tobacco tax to raise $4.7 billion over the next four years
• Inland Melbourne-Brisbane rail link
• $50 billion spending on infrastructure
• Youth jobs PaTH scheme
• 10% GST levy on online purchases below $1000
• $2.9 billion more for public hospital services

If you would like more detailed information on the budget then please contact drop us a line or give us a call