Boost your chances of becoming a homeowner with a home loan pre-qualification

The home loan application process doesn't need to be a daunting task -by getting pre-qualified you are not only simplifying the home loan process, you are also streamlining the house hunting process.

An added benefit of a pre-qualification is the credit check - this could reveal whether or not you should wait to improve your credit score before you apply for a home loan or not.  Having a good credit score will not only improve your chances of having your home loan approved, but can positively affect your lending terms and interest rate.

Once your application is approved, you will be issued a pre-approval certificate that is valid for 90 days.  Although pre-approval does not mean that the bank has approved your bond application, it does give you an indication of what the big banks will be willing to offer you based on your affordability. 

It also proves to the seller that you are a serious buyer with the financial means to buy the home.

What you should keep in mind

Although banks might offer 100% loans and even 105% loans in some cases, bear in mind that having a deposit does hold some sway when banks decide whether or not to approve a bond application. A deposit of even just 10% will also go a long way to securing a better interest rate and lowering your overall bond repayments.

Using MyProperty Home Loans’ online pre-qualification service gives you a good idea of your purchasing power, so that you will know how much you can contribute towards this all-important deposit. This makes it possible to save more over the long term and put you in a better position to respond to future interest rate hikes.