You may have recently tried for your mortgage approval and been told that it doesn’t quite work.
Of course that’s not the news that you wanted, but maybe it’s time to try again.
Why It’s Now Time To Try Again
You would know that interest rates are at records lows, but until now the banks have been very conservative when assessing what a person can afford to borrow.
The banks apply a “test rate” rather than the actual interest rate.
Today we have had ASB Bank make a change reducing their test rate by about 6.50% and therefore changing some scenarios from what was a “decline’ to a possible approval.
This Example Illustrates Why Trying Again Can Work
Our clients wanted to get on the property ladder and buy their first home.
With a purchase price of $800,000 they had a good deposit of $120,000 (15%) and therefore needed a mortgage of $680,000.
They have a combined income of about $125,000 ($80,0000 pa and $45,000 pa) and their expenses were not unusual, although they have childcare costs of $150 per week and a car loan costing $115 weekly plus a small student loan remains.
When we looked at this yesterday they would have been declined by the bank as it was deemed that they could not afford the loan; however today we can reassess this same loan using the new test rate and it gets approved.
The change makes a difference of $232 in the banks calculated monthly surplus – that takes it from a declined loan to an approve loan!
Try Again Now For Your Mortgage Approval
Don’t give up … Try Again
As mortgage brokers we talk to a lot of people that require home loans.
In many cases we can get one of the banks to approve the loan, but there are also times when we need to use one of the non bank lenders.
But there are also times when the numbers just do not work for the bank criteria and the loans are declined. In these cases we try and suggest what changes need to be done to get an approval, but it is frustrating to see people miss out especially when it is often so close.
Today we have the opportunity to help some of those people that may have just missed out.
We would love to help you with your mortgage approval.
