Realistic Qualifying Criteria
Every lender has its own set of qualifying criteria they use when determining whether or not to approve a home loan application. Some of these criteria are not realistic and can make it difficult for certain individuals to be approved for home loans. In general, traditional lenders require borrowers to meet the following criteria:
- Must be between 18 years old and 55 years old.
- Must be a permanent citizen, or a non-resident married to an Australian citizen.
- Your borrowing status, meaning: are you an individual, a company, or a trustee of a corporate trust or SMSF? It is important to note that lenders are more likely to approve home loans for individuals than they are for a company or a trust.
- Must have a stable and secure income. Lenders prefer traditionally-employed, PAYG employees because it is easier for these individuals to prove their income.
- Must have a good credit score, few expenses, comparable assets for their age, limited liabilities, and a deposit between 10 and 20%.
- Must be considered a low-risk loan. Lenders will look at the size of your loan, where your property is located, and whether you are using the property to live in or as an investment property.
The Mortgage House Difference
At Mortgage House, we understand how challenging it can be to apply for a home loan, especially if you don’t meet the lending criteria set forth by traditional lenders. We understand that more people are self-employed, have non-traditional income sources, and are buying homes at an older age, which is why we use realistic qualifying criteria. We sit down with you to get a full picture of your financial situation, allowing us to find the perfect home loans for non-traditional borrowers.