How to Boost Your Borrowing Power in 2024

Increasing your borrowing power is essential for securing a better home loan deal, especially in Sydney's competitive property market. One of the easiest ways to boost your borrowing power is by paying off existing debts, such as credit cards or personal loans, before applying for a mortgage. Reducing your debt-to-income ratio can make you a more attractive borrower to lenders.

Another tip is to save for a larger deposit. A bigger deposit not only reduces your loan-to-value ratio (LVR) but also lowers the risk for lenders, which can increase your borrowing capacity. Additionally, managing your expenses by cutting unnecessary costs can free up more of your income for mortgage repayments, further boosting your borrowing power.

Finally, working with a mortgage broker can help you explore options from a wide range of lenders. A home loan expert can assess your situation and suggest ways to improve your borrowing capacity, such as consolidating debt or choosing a loan with more flexible criteria. Taking these steps can significantly enhance your chances of securing a larger loan in 2024.

*Disclaimer: The content provided is for informational purposes only and is not financial advice. Please consult a professional advisor to discuss your specific situation.*