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Mortgage Calculator: what lenders look for

Getting a mortgage can be tricky business. Arm yourself with some insider knowledge and start planning for your dream home today! Here are the key factors that mortgage lenders look for...

  • Your monthly income: in practice, you need to be earning $50,000+. Focus will be on your basic income rather than commissions, bonuses and overtime – but these do count
  • Your occupation: some professions and trades (e.g. construction) are considered unstable. Employment should be full time and permanent
  • Your job stability: it’s an advantage if you’ve been at the company for at least 2 years. Mortgage lenders will also look at your employment history to establish continuity
  • Debt-to-income ratio: combined housing expenses and other debts should be no more than 35% of your income
  • Credit history: you should have no payment arrears or outstanding direct debits. Unnecessarily large credit card balances will count against you. It’s a good idea to check your credit report before you apply for a mortgage
  • Loan-to-value ratio: the proportion of your loan amount to the value of your property. Lenders look for low ratios i.e. the deposit should be as large as possible
  • Savings: considerable emphasis is placed on savings. You should have a large deposit and evidence of good saving habits
  • Life style: have you paid rent regularly? Do your monthly statements reflect frugal spending? Is your deposit a parental gift or have you saved for it yourself?
  1. Graham Kalms08-12-2010 11:59:37

    I have a problem with veda advantage as they refuse overturn their decision and they don't owe to me and i don't owe them so how can I borrow without Veda advantage approve so I do need to find $8,000 very urgently and I have less than1 week left to find.

  2. AusomeFinance30-11-2010 17:20:39

    Hi Rhonda, if you are a homeowner you shouldn't have any problem getting a loan for $4000. It is generally harder to get an unsecured loan once you are retired - but because you have a regular pension you may be eligible. Call into your bank for free advice.

  3. rhonda.boodle27-11-2010 12:15:29

    iam righting to ask if there is a loan place i can go because i need 4000 to pay my bills off. so i can just have one bill to pay each month.i dont work anymore i have retried. and i am on a pension and i get 500 a fortnite. iam fineing it very hard ti get by. thank u for your time rhonda

  4. Joanne Cunningham19-11-2010 16:25:20

    That's great advice, thanks!

  5. Natasha Ollenburg18-11-2010 11:16:19

    i think this site is awesome, especially trying to help out people in hardships, whom have bad credit history or whom have no credit history at all. hopefully I will be lucky enough to get approved for a loan during my hard time...time will tell if these sites are what they say they are!

  6. Sarah11-11-2010 12:39:23

    I'm in a similar situation Jodie. I managed to get a 2000 loan but it has helped a lot. Make an appontment to talk to your bank. Good luck!

  7. jodie09-11-2010 14:44:22

    hi im bankrupt for second time have 2 causal cleaning jobs one iv held for 12 month second job i started 2 months ago i work 5 days wk at this job 25hrs.other job gives me anywere from 12 to 40 hours awk im a single mother of three children paying 250wk rent had a run of bad luck car stolen and burnt out. 8 days later house was broken into while we were sleeping. bank account has been emptied by a so called friend im struggling now need $4000 loan to retreve our things from pawn brooker catch rent up pay tele check before im charged with froud and to pay for xmas

  8. Penny09-11-2010 10:16:48

    I totally agree with these tips! I use them all the time

  9. Payday Loan26-10-2010 19:02:07

    I really like this blog, it gives interesting ideas for the reader. Keep it up!

  10. ani Ipradjian06-10-2010 05:36:53

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