Low borrowing power is something that many homeowners face, and while they may not initially know what to do, there are plenty of solutions to help them climb or move onto the property ladder.
We’ve put together a few examples of people who are likely experiencing something very similar to what you have! And of course, we can’t provide examples without offering solutions.
Keep reading and let us know if you spot a scenario that looks a lot like yours.
Rising from financial challenges: Rebecca’s path to homeownership
Rebecca wanted to buy a house but was met with limited borrowing capacity due to financial constraints. She couldn’t get a home loan big enough to cover what she wanted to buy, and she didn’t know what steps to take to improve her borrowing power.
Here is where Rebecca sought advice from a broker. Together they identified areas for improvement, including credit score enhancement and debt consolidation. With a bit of hard work and cutting back, Rebecca was able to optimise her financial profile and significantly improve her borrowing capacity. With the guidance of her broker, she was able to explore home loan options that aligned with her newfound borrowing power, and was ultimately able to secure her dream home.
Unlocking hidden potential in property investment
Marco, an ambitious investor, faced a unique challenge – his borrowing capacity was hampered by existing investment property loans. Determined to continue building his real estate portfolio, Mark collaborated with a mortgage broker specialising in investment strategies. Through meticulous analysis of his financial portfolio and assets, the broker identified underutilised equity in Mark's existing properties.
By refinancing and leveraging this equity, Mark was able to unlock additional borrowing capacity. With the guidance of his broker, Mark can now strategically invest in properties that align with his long-term financial goals, effectively expanding his portfolio.
Turning entrepreneurship into homeownership
For entrepreneurs like Sarah, showcasing borrowing capacity can be a bit more complicated because of fluctuating income streams and unique financial documentation. Sarah's dream of homeownership seemed distant, despite the fact that she enjoyed working for herself, was very good at it, and didn’t want to change anything.
The solution? Sarah found a home loan specialist that was experienced in working with self-employed individuals.
The specialist broker recognised the need to present Sarah's financial stability in a more comprehensive manner. They collaborated to compile a compelling portfolio of her business success, future growth projections, and consistent income patterns. Through this strategic approach, Sarah managed to unlock a borrowing capacity that mirrored her financial reality, allowing her to purchase her first home.
Approaching retirement, Colma and Edwin yearned to downsize and secure a more manageable property. However, their reduced income in retirement put some constraints on their borrowing capacity. Undeterred, they consulted a retirement-focused mortgage broker who proposed an innovative solution. By utilising the Pension Loan Scheme and tapping into the equity of their current home, Colma and Edwin were able to bolster their borrowing power with a lump summnbgfds\. With this newfound capacity, they were able to navigate the real estate market and successfully downsize to a property that aligned more with their retirement goals.
Homeownership done right
These stories may not be real, but they underscore the diverse needs and solutions Australians have when it comes to borrowing power and affordability. From optimising financial profiles and leveraging equity to strategic refinancing and innovative government schemes, these examples showcase the power of tailored mortgage advice.
With determination, expert advice, and a dash of innovation, the path to homeownership in Australia can be an exciting reality for anyone willing to take the journey.
If you’re ready to take a new step in your homeownership journey, get in touch with us today and let’s see what we can do for you.