Most people need to borrow some money when they buy a home. The money borrowed is most commonly in the form of a mortgage, and for properties that will be your home the official title is a residential owner occupier mortgage. A mortgage is a loan which is secured against the property you are financing. In securing the loan against the property the rates of interest charged on these loans are generally lower than any other type of consumer lending.
There are many factors taken into consideration by lenders when determining how much they will lend to you and on what rates. For example the size of your deposit will affect the rate of interest offered, with larger deposits attracting lower rates. How much a bank is prepared to lend to you is less straight forward and is determined by a combination of factors, such as, but not limited to your type of employment, how your income is structured and what other financial commitments you may have.
Lenders have moved away from crudely working out your borrowing capabilities as a multiple of your income, in favour of affordability modelling which produces a more accurate result for you and your unique set of circumstances, so for example if you have children you will find most lenders will factor in the extra expense that comes with the joy of having little ones. This is not however the case for every lender and at Domus Finance we believe the art of the ‘broker’ is to take into consideration all aspects to your situation and use their extensive knowledge and expertise to establish the ‘best lender’ to lend you the money you need to finance your home.
As part of the process we will explore your short, medium and long term objectives to ensure we advise you on the very best way of structuring the mortgage to meet your needs.
If you are interested in speaking to an experienced adviser please click here to find out how to contact us.