27 March 2008
If you are a prospective first home buyer trying to find a lender that will accept you, then you may want to reconsider your approach. Lending institutions would prefer to have more business than less, so there is probably a reason they are reluctant to accept your application. Don't be disheartened, though, as you may be able to address the issue if you can identify what it is.
Many first home buyers look at their situation as one in which they could pay off the loan, rather than how much of a risk they present in not repaying it. The banks and other lenders are looking at you in the more negative light, however, so try to see your situation from their point of view.
If you were considering applying with a minimal deposit or even no deposit, then imagine how much this presents a threat to the lender's investment. As you wouldn't have demonstrated much ability to save, the lender can only assume that it is unlikely you will be ever pay ahead of schedule, and may even be vulnerable to interest rate hikes. At this point in time, lenders will be seeking only high quality borrowers who aren't going to be affected much by economic shifts. First home buyers need to present financial resilience to have a hope of attaining a worthwhile loan.
If you demonstrate such qualities, then perhaps you should consider our range of lenders looking for low risk first home buyers.
First Home Buyers