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“I Want to Buy My First Home, But I Feel the Bank Might Say No” — How to Boost Your Chances


HOUSE HUNTING

At Ascot Mortgage, we speak with many first home buyers who feel uncertain about their chances of securing a home loan. Whether it’s past financial mistakes, debts, or doubts about their deposit or income, the fear of rejection can often stop people from taking the next step toward home ownership.


The good news is that every financial situation is different, and many scenarios that may seem challenging at first can often be resolved with the right strategy and support. Here are key steps you can take to give yourself the best possible chance of buying your first home:


1. Defaults on Your Credit File


If you have defaults on your credit history, don’t panic. Engaging a professional credit repairer can help improve your credit score. Often, they can negotiate with creditors on your behalf to remove or amend impairments. Depending on the type of default and how long ago it occurred, there are lenders who may still consider your application.


2. Late Payments & Arrears


Lenders like to see a clear pattern of good repayment behaviour. If you’ve had a history of late payments or arrears, it’s recommended to maintain strong, consistent repayment conduct for at least 6 months before applying for a loan. This shows financial responsibility and can significantly strengthen your application.


3. Managing Unsecured Debts


If you’re juggling multiple unsecured debts—such as personal loans, car loans, credit cards, or Buy Now Pay Later accounts—this can limit your borrowing capacity. A good strategy is to focus on paying off high-interest debts first, typically credit cards. Alternatively, consolidating these debts into one loan can simplify your repayments and reduce your interest burden, improving cash flow and your overall financial health.


4. Income & Borrowing Power


Every lender assesses income differently. Some may include bonuses, overtime, or rental income, while others may not. As brokers, we have access to a wide panel of banks and lenders, allowing us to compare and quickly determine your maximum borrowing capacity based on your income and employment situation.


5. Deposit Options


While a 20% deposit is ideal to avoid Lender’s Mortgage Insurance (LMI), it’s not always realistic for first home buyers. Fortunately, there are several solutions available:


  • Government Guarantee Schemes: Eligible first home buyers may access loans with as little as a 5% deposit, without paying LMI.

  • High LVR Loans: We work with lenders who offer up to 95%-98% loan-to-value ratio (LVR) loans, depending on your circumstances.

  • Guarantor Loans: If a family member is willing to assist, you may be able to borrow up to 100% of the purchase price and associated costs, backed by their equity.


 

Next Steps: Speak to a Mortgage Broker


Every financial journey is different, and the steps above are general guidelines. At Ascot Mortgage, we take the time to understand your personal situation, goals, and challenges. Our role is to help you navigate the home buying process with expert advice, tailored strategies, and access to a wide range of lenders.

Ready to take the first step? Contact us today to create your personalised Home Buying Plan and discover how close you really are to owning your first home.



 
 
 

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