Banks will consider several factors when deciding whether to offer you a home loan and the specific terms of it – i.e., the amount they’re willing to loan you and the interest rate that they’ll grant you.
Factors that will positively impact the interest rate banks offer you:
- If you’re able to put down a deposit against the property you’re looking to purchase,
- If you can show the banks that you’ve consistently paid off your existing debt (they see this when they get a credit report on you),
- A steady income/salary,
- If you can stick to your budget. You’ll need to have an understanding of your monthly expenses, and how you use your income/salary to pay all your living costs.
Use a mortgage originator like GetGo Home Loans to shop around for the best rate.