- Not getting your taxes done. We just financed many clients into houses last year whose finances were not up to date. It is not a deal breaker, however, they do have to pay a little more on rate or have very good equity positions to get finance this way. If you’ve been avoiding your taxes for too long, it may be time to make a resolution to get all your finances up to date. Your accountant and/or book-keeper can also help coach you into a better position, get some feedback from them on your finances.
- Making too many enquiries on your credit report! If you are a phone or online shopper for loans, stop now. Online applications or call centres go trigger happy on your credit file and this is NOT good for your credit file. Stop now. Use a broker to advise you of where you will and won’t get approved but don’t apply for a loan formally unless you really need it, or have made up your mind. As the years go on your credit file and score will have more and more bearing on how banks see you.
- Not budgeting. Budgeting is the key to good financial health. Sit down and work out all your weekly, fortnightly, monthly and annual bills. Divide this by whatever format you get paid in. Paid fortnightly? Work out your annual bills and divide by 26. Stick this into a bills account the moment you get paid. The rest should be for day to day expenses and food. If you want to save, do the same with a savings account, the moment you get paid, quarantine the funds.
- Not saving enough for a house deposit. Nobody enjoys saving to begin with. However, every successful asset and liability page I look at started with a savings pattern. You can’t step into the property market and start building without your first down payment (unless of course you have a lovely guarantor to help you up!). Initially savings hurts, you miss out and you have to budget, but once you start seeing your account increase you will become addicted. Start a savings plan today.
- Not knowing your interest rate. Nine times out of ten our clients guess as to their home loan rate is wrong. If you don’t know your current rate, or whether it’s competitive, talk to us today to have it reviewed. There is no cost to ask and we can do all the work for you.
Elizabeth Wilson has been working in mortgage broking and bank residential lending and management for over 14 years now.