Applying for your first home loan can be a nerve-wracking experience. Uncertainty about what is actually required can be daunting, and we can tell you from experience that your financial situation is as unique as your finger print. On top of that the borrowing landscape frequently changes as lenders clamour to service one particular niche or another.
But, when you strip it all back, the success of your first loan application comes down to two key criteria: Can you satisfy the lender that you have the ability to repay your loan (this is called a serviceability assessment), and do you have enough to contribute to your purchase (what percentage of the value of the asset you are buying are you required to borrow).
Lenders use the five C’s of credit when assessing your ability to pay back a mortgage.