Northern Beaches Mums Group
Northern Beaches Mums Group

There are 3 things you need to do if you want to get a mortgage in 2022

When you want to get a home loan, there are things you can do to either improve or hinder your chances of getting approved. Here are 3 things you need to do…

Stay away from buy now pay later 

Whilst they are very convenient, they are also very bad for your spending history. There are so many of them popping up these days. Whether it is AfterPay. Zippay or any of the others, the bottom line is – banks don’t like them. 

Why? Because when you borrow short-term funding for small purchases, it suggests to a lender that you: 

  • Can’t manage your cash flow 
  • Live beyond your means 
  • Don’t have any savings to fall back on 
  • Are not responsible with your money 

The other thing to consider is that these “debts” are effectively considered to be a line of credit by the banks, which impacts your creditworthiness. To keep your bank statements in the best possible condition, it is advised to avoid buy now pay later schemes wherever possible.  

Shop with cash 

Banks and lenders are going through your income and expenses with line-by-line attention to detail. Your disposable spending is considered when they calculate whether they believe you can afford a loan. Things like Christmas presents and socialising over the silly season will all be taken into consideration as if you spend and shop like that all year round, so try and be mindful of your spending.

Do your tax return 

Most people know you need to provide evidence of income in the form of payslips, but a lot of people don’t realise the banks will also request to see your latest tax returns if you have added income like rental income. This is especially important for self-employed borrowers, who need to show 2 years’ worth of tax returns to prove their income.  

Most lenders will want to see your current year’s tax return, or at the very minimum, the previous financial year’s return. Your tax return can be a little fiddly and time consuming to prepare, so it is a good idea to tick that off the list in advance. That way, by the time you apply for a loan, you have prepared yourself and your finances in advance and you are in the best possible position to get home loan approval.  

If you have any questions about the home loan process, how much you may be able to borrow or what your options are, feel free to get in contact with our friendly team today.  


Louisa Sanghera is a Finance Broker for Residential Mortgages, Vehicle and Asset Finance, Commercial Lending and Budgeting and Cashflow Coaching with Zippy Financial.

She has gained more than 30 years in the Banking and Finance Industry, and since founding Zippy Financial, has become a multi award-nominated expert in the field of finance featuring regularly in industry press and speaking at finance and investment seminars across the country.

Website: www.zippyfinance.com.au
Email: louisa@zippyfinance.com.au
Phone: 1300 855 022

Disclaimer:This article contains information that is general in nature. It does not consider the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial.      

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