Ways to Increase Your Borrowing Power

Depending on their lender of choice and financial situation, borrowers can have quite different borrowing capacities.

This is also the reason why the same customer may discover that their current borrowing capacity differs significantly from their previous mortgage experience.

Here are the tips to increase your borrowing capacity:

Reduce your expenses – Cut unnecessary expenses such as subscription services, night outs, major travel, and manage your finances more efficiently to demonstrate financial responsibility.

Increase your Income – Seek opportunities for a raise, take on a second job, or explore passive income sources.

Reduce your Debt – Pay down existing debts to lower your debt-to-income ratio, making you a more attractive borrower.

Reduce your Credit Card Limit – A credit card can lower your borrowing capacity, even if you only use a small portion of your limit or pay off the balance in full each month. Lenders often assume you’ll use most or all of your limit monthly and might only make the minimum payment.

Improve your Credit Score – Regularly check your credit report and address any discrepancies. Pay bills on time and reduce outstanding debt.

Save for a Larger Down Payment – A larger down payment can reduce the loan amount needed and improve your borrowing terms.

Keep Your Financial Records Organized – Maintain clear and thorough documentation of your financial history to streamline the application process.

Consult a Broker – Seek help from a broker who can recommend lenders that can favourably look into your profile. A broker can help you align your application to the lender’s policy to increase your chances of getting approved for a larger amount.

If you need assistance with your home loans, car loans, constructions loans, you may contact us through our WhatsApp or you may give us a call at 0424194688.

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Ways to Increase Your Borrowing Power

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