Phone Icon
(02) 9765 0299    Facebook Twitter Linkedin

All the latest news and information from Beechwood.

If your homebuilding plans have been put on hold for the past few months due to COVID-19, we have some great news for you. The government is offering the $25,000 HomeBuilder grant to those looking to build a new home in 2020.

Whether you already have a block of land and just need a new home, or perhaps you need a complete home & land package, the $25,000 HomeBuilder grant will give you a boost to get into your new home sooner.

With Beechwood’s wide range of elegant home designs and value-packed home & land options, the HomeBuilder grant could enable you to consider both single storey and double storey designs. And it may even enable you to consider including a Granny Flat in your plans.

Perhaps you already have a home and property, but the house could really do with an upgrade. Priorities often change over time, and the home you built 5, 10 or 20 years ago may no longer suit your current needs. At Beechwood, we specialise in Knock Down Rebuilds (KDR). We know that while you may love your location, you may no longer love your house. Knock Down Rebuilds also qualify for the HomeBuilder grant, provided you meet the stated criteria.

The HomeBuilder fine print

So, how can you qualify for the $25,000 HomeBuilder grant? As with any type of grant or scheme, there are certain conditions applicants need to meet to be eligible.

To qualify for the HomeBuilder grant, your new home can cost up to $750,000 (including land). You also must sign your building contract by December 31, 2020 and your construction needs to start within three months of the contract date. Read the HomeBuilder fact sheet for more details.

Homebuilder grants are also available for substantial renovations like a Knock Down Rebuild of your existing home where the contract is between $150,000 and $750,000, as long as the total value of your renovated property is less than $1.5 million. 

The great thing about the HomeBuilder grant is that it is open to First Home Buyers, as well as second or third home buyers. However, unfortunately there are income caps for the grant. For individuals, the cap is $125,000 per annum based on your 2018-19 tax return and for a couple the cap is set at $200,000 per annum based on your combined 2018-19 tax returns.

AdobeStock 254361186

Benefits for First Home buyers

There’s never been a better time for first home buyers to begin their journey to owning their first home. As the government is keen to help First Home Buyers get into their homes sooner, the $25,000 HomeBuilder grant does not affect existing First Home Buyer schemes. That means that if you are eligible, not only can you receive the $25,000 HomeBuilder grant, but you could also access a suite of other government incentive packages, as outlined below.

First Home Owner Grant

A $10,000 grant to First Home Buyers who have purchased a Brand New Home on or after 1 January 2016.

First Home Buyer Stamp Duty Concession increase for the next 12 months

Gives First Home Buyers a reprieve from Stamp Duty in the form of an exemption or concession. On July 27, NSW Premier Gladys Berejiklian announced that for the 12 month period starting August 1, 2020, the Stamp Duty Concession will be extended to First Home Buyers purchasing newly built homes valued up to $800,000. Prior to August 1, 2020, the Stamp Duty Concession only applied to newly built homes valued up to $650,000.

As well as increasing the stamp duty threshold for newly built homes, for the same 12-month period the NSW government will also raise the threshold for stamp duty on vacant land, from$350,000 to $400,000.

First Home Loan Deposit Scheme

Usually, first home buyers with less than 20% deposit will need to pay lender’s mortgage insurance. With this scheme, First Home Buyers can purchase their home with as little as a 5% deposit and the government will act as the guarantor on the remaining 15%. However, you may want to act quickly as there are a limited number of places within the scheme.

First Home Super Saver Scheme

Introduced in the 2017-18 Federal Budget to reduce pressure on housing affordability, the FHSS allows you to save money for your first home inside your super fund.

Start your homeowner journey today with Beechwood Homes

However you are looking to utilise your $25,000 HomeBuilder grant, you’ll find a fantastic range of home designs at Beechwood. We build in some of the most idyllic locations in NSW, from Port Macquarie on the mid-North Coast to past Narooma on the South Coast. Contact us today or visit one of our many display home locations to get started.

in Latest News 106

Have you considered a Knock Down Rebuild? It may be the perfect option for building your new home. But what exactly is a Knock Down Rebuild?

As the name suggests, a Knock Down Rebuild involves demolishing your existing house and building a brand-new home on the cleared land. 

You may already be living in an area that you love, and the only thing that would make it better would be replacing your existing home with something brand new. After all, why move when you can stay in an area you know and love?

A Knock Down Rebuild through Beechwood Homes can give you all of that. A brand-new home in the area you have grown to love. Our team will work closely with you to tailor a solution to your family’s needs, and the dimensions of your property.

Your existing house will then be knocked down and cleared so that construction can begin as soon as possible on your brand-new Beechwood home. We have a wide range of enticing home designs to suit all types of families and home buyers.

The benefits of a knock down rebuild

Whether you are a downsizer, an investor, or a first home buyer, a Knock Down Rebuild could be the right fit for you. So, what are the benefits of undertaking a Knock Down Rebuild instead of buying or building a new home elsewhere? 

One of the major benefits is that you can remain in an area that you already know and love. If your family is growing or has grown, and all that is stopping you from fully living your dream is space, then a knock down rebuild is the perfect way to solve that problem. 

Another great benefit is that you will have control over the flexibility and functionality of the design. Where you may have lived around the design of your existing home, you will now be able to design your home around how you live now. And it won’t be piecemeal; all the details will be just how you want them.  

Where to start with your Knock Down Rebuild?

So, how do you get started? The first step is finding a home builder with extensive knowledge in knock down rebuilds. With almost 40 years’ experience in building homes in NSW, we know a thing or two about Knock Down Rebuild projects. We can discuss your vision and advise you on the best way to deliver it.

As a builder of choice in NSW, Beechwood Homes is well-versed in government and council building regulations and can pre-empt potential problems before they occur. This ensures your customer experience is smooth and enjoyable.

To be continued…

We hope that this first part of our two-part blog series on Knock Down Rebuilds has got you thinking about what you could do with a brand new Beechwood home on the block of land you currently own and love.

In Part 2, we will take a closer look at what’s involved in a Knock Down Rebuild and the steps that need to be taken to have your new dream home from Beechwood Homes in the area you love. 

If you’re ready to take the next step, contact Beechwood Homes today to learn more about our Knock Down Rebuild process.

 

in Latest News 65

In Part 1 of this two-part series, we laid the foundations for why you should consider a Knock Down Rebuild for your new home, along with the benefits of a KDR and where to start.

Now, in Part 2, let’s dive a little deeper into your Knock Down Rebuild with Beechwood Homes.

The key steps to your Knock Down Rebuild 

After you have spoken with the team at Beechwood Homes and decided that a Knock Down Rebuild is the best way for you to achieve your perfect home,

you are now ready to get started. There are four key steps to a knock down rebuild:  

  • Design.
  • Approvals.
  • Demolition. 
  • Rebuild.

Design

Having chosen the Knock Down Rebuild path for attaining your new home, you now need to consider the design. At Beechwood Homes, we have many innovative home designs to choose from, all of which can be tailored to meet the needs of your family. You can go inside our many single storey and double storey display homes from the comfort of your current home with our virtual tours to see which will best suit you. 

Approvals 

Many regulatory approvals need to be signed off before the physical part of a Knock Down Rebuild can commence. Following the correct processes and procedures will help your project to progress with minimal fuss.

The Beechwood Homes team will work with you to manage all approvals on your behalf to ensure your Knock Down Rebuild keeps moving forward and doesn’t succumb to unforeseen delays or complications.

AdobeStock 26643557

Demolition 

Once your project has been approved and permits are in hand, then the action starts with the demolition. All of your utility services will be disconnected, and your existing home will be demolished down to its foundations. The rubble will be cleared, and the site prepared for the rebuild. 

Rebuild 

One of the most exciting times in your life will be seeing your new home come to life. In the Rebuild stage, communication from your builder is critical. With Beechwood, not only will you have a dedicated team member who will be your primary point of contact, but you will also be given access to Beechwood’s online communication hub, Pulse Portal

As each stage of your Knock Down Rebuild is completed, your site supervisor will update you and provide images of the stages that have been completed via the Pulse Portal. 

Knock down the old and rebuild anew 

One of the hardest parts of finding a new home is facing up to the possibility that you may have to move away from the area you know and love. The area where your family has grown-up, put down roots, and built long-term relationships with your neighbours. 

But that doesn’t have to be your future – if you choose a builder with a proven track record in successfully delivering knock down rebuild projects. At Beechwood Homes we have been delighting customers with new homes for nearly 40 years.

Experienced in knock down rebuild projects, we will work with you to ensure that you can stay in the area where you have built a life and give you the best new home in your street.

Who would? Beechwood. 

With almost 40 years of building knowledge and experience, Beechwood will make your knock down rebuild a breeze. Call us on (02) 9765 0299 to get started, or fill out our contact form and we will be in touch. 

in Latest News 58

Lonely Planet1 put it best when it said the NSW South Coast is, “paradise without pretension”. Up and down the South Coast of NSW are pristine enclaves offering a refreshing change of pace and adventure. While recent bushfires impacted the region, don’t let that once in a generation event deter you from all that South Coast living offers. Rebuilding is happening across the region and the South Coast remains the perfect setting for life in the slow lane.

Whether you’re dreaming of a sea change, a tree change, or just a way to detach from the hustle and bustle and slow things down to a more favourable pace, you’re bound to find it somewhere on the NSW South Coast.

A snapshot of the NSW South Coast

The NSW South Coast comprises four geographic regions:

  • the Illawarra Coast (Wollongong, Dapto, Calderwood, Shellharbour and Kiama);
  • the Shoalhaven Coast (Berry, Nowra, Jervis Bay and Ulladulla);
  • the Eurobodalla Coast (Batemans Bay, Moruya and Narooma); and
  • the Sapphire Coast (Bega, Merimbula and Eden).

Up and down the NSW South Coast awaits a refreshing way of living, where the soothing scent of nature seeps in through your kitchen window, the air is lush, and the pace is chill. From coastal communities to inland towns set back into the rolling countryside, a different pace of life awaits.

There’s plenty of reasons to visit the South Coast of NSW, but there’s even more reasons to build your new home on the South Coast. Here’s a quick look at the main areas and townships of the NSW South Coast to consider making your sea change or tree change move to.

Wollongong

Wollongong

Sydneysiders are flocking to Wollongong to enjoy a sea change that offers the best of both worlds. Only 80km south of Sydney, Wollongong offers a quaint beach town feel for those who want to escape the hustle and bustle while remaining within reach of the big smoke.

Dapto and Calderwood

Nestled between the western shore of Lake Illawarra and the foot of the Illawarra escarpment, Dapto is lush with natural beauty and in the 1800s had a thriving dairy industry. A short drive southwest of Dapto in the Macquarie Valley lies Calderwood, where natural beauty meets convenient modern living. Calderwood is set to become one of the largest master-planned communities in the Illawarra region.

Shellharbour

A vibrant regional centre sitting pretty between the Tasman Sea and rolling lush pastures, Shellharbour boasts some of the best beaches on the NSW South Coast and fantastic fishing and snorkeling spots. Both a cultural and retail centre, Shellharbour features a collection of boutique retailers and a major shopping centre, along with aviation and rail museums.

Kiama

Kiama

South of Wollongong, Kiama is a seaside town with beautiful beaches and coastal walking tracks set atop fortress-like cliffs. Fishing, surfing, and kayaking are key past times that this gorgeous town that dates back to the 1880s offers.

Berry

Blessed with heritage buildings and award-winning restaurants, Berry offers charm in spades and is a favourite for those seeking an elegant country setting. Berry’s choice local food and wine can be found at local regular produce markets.

Nowra

Sitting on the banks of the gorgeous Shoalhaven River and surrounded by rich farmland and vineyards, this town of 37,000 on Australia’s Oyster Coast is the commercial centre of the Shoalhaven region and boasts museums, galleries, and a train line.

Ulladulla

An important fishing port since 1859, Ulladulla is a vibrant town built around a picturesque harbour and close to sparkling lakes, pristine national parks and secluded beaches.

Batemans Bay

Batemans Bay

A quick two-hour drive from the essential services of Canberra, Batemans Bay offers a laid-back vibe with stunning beaches, incredible seafood and a whole range of outdoor activities.

In support of South Coast living

The Beechwood Homes story dates back nearly 40 years, and for much of that time we have been building homes for local residents and families up and down the NSW South Coast.

Through our display home centres in Calderwood Valley, Shell Cove and South Nowra, we have met and developed relationships with many families looking for builders on the South Coast. Many have gone on to build homes with Beechwood Homes. Some have been born and bred South Coast locals building their very first home. Some have been former Sydneysiders opting for a sea change – or a tree change – and for the good life that the NSW South Coast offers in spades.

Considering a move to the NSW South Coast?

Beechwood Homes builds across most regions of the NSW South Coast. Visit one of our display home centres in the area to find out how we can help you make the South Coast lifestyle change you’ve always dreamed of making.

[1] https://www.lonelyplanet.com/australia/new-south-wales/south-coast

in Latest News 178

b2ap3_thumbnail_10things.jpg

Like so many people around Australia, at Beechwood Homes many of our office-based staff have shifted to working from home during the COVID-19 pandemic. Here’s what we’ve learnt from our own team and from our customers about working from home.

1. Set up a separate area

Our number one tip for working from home is to set up a separate work area if you’re able to. Ideally, this would be a separate room in your home with a door so you can shut out the noise of your household but setting up a study nook could work equally well.

For those starting a home business or shifting permanently to working from home, you might consider building a workspace away from the main house. A Granny Flat could be a fantastic way to create that separate space, while also being multi-purpose in the long run, with the opportunity to rent the space out or house relatives down the track.

2. Establish a routine and stick with it

One of the greatest, and yet also one of the trickiest, parts about working from home is the potential for flexibility. If, for example, you find yourself having to supervise your children’s home schooling, you might segment your day to fit in with those commitments and work in time blocks rather than a typical 9am to 5pm work day. However, if you don’t establish a routine and stick with it, that flexibility could quickly turn into chaos.

Make sure to create a schedule that works for your household and make your colleagues and family aware of it. If you’re lucky enough to have a separate workspace either within the house or in a granny flat, you could even have a sign on the door to indicate whether your office is ‘open’ or ‘closed’.

3. Get organised

Staying organised is one of the most difficult aspects of working from home, because the structure, storage and systems of a typical workplace are usually missing.

To stay on-track with your work without getting overwhelmed, organisation will be key. Get organised by creating specific filing systems, schedules, and task lists that help you feel in control. Depending on your occupation, you may also want to create a specific storage area for your work, especially paperwork that can easily get lost among household correspondence.

4. Dress the part

Although working from home allows you to dress in more comfortable clothing than you may in an office, you may want to create a pseudo uniform or put limits on what you can wear during your work hours.

Sitting around in your pyjamas all day might make you more comfortable, but you probably won’t feel like a professional worker and could make it harder for you to switch off from work at the end of the day. You’ll also look pretty silly when you participate in video calls.

5. Switch off at the end of the working day

Maintaining that work-life balance can be hard when your work is always right there staring you in the face. It’s important, however, not to get into the habit of working all day and night and having no leisure time. Train yourself to switch off your computer and other devices when you finish your day and don’t constantly check emails or other messages.

This is easier to do if you have a separate work area. The act of physically leaving a work-specific room or area and shutting the door behind you can help you mentally break away from the daily grind as well.

6. Take regular breaks

When making your schedule consider working in smaller spurts and allowing yourself time to get up from the computer to stretch. Without co-workers around, you may forget to take time away from your desk but doing so will help you to re-set both physically and mentally, improving your efficiency.

7. Exercise and stretch

When you do take breaks make sure you stretch and exercise, even if it’s just walking around your house, or visiting the kitchen. If you live in a double-storey house, make use of your stairs to do an impromptu workout.

Exercise stimulates your body and brain and will make you more alert and energised, which means you’ll be ready to dive back into work after your break.

8. Use technology

Since the majority of your work will likely be done on your computer, you will need to be computer savvy. Ensure that you have remote access to your company server and logins for programs you routinely use. Your employer may be able to loan you some equipment to use at home and provide assistance in setting it up.

9. Stay connected

Make sure that you’re readily available via email, phone, text, instant message, or conference call. When in doubt, over-communicate until told otherwise. Be vocal about your activities and achievements while away from the office.

10. Learn how to deal with distractions

Pets, TV, and family members are just a few distractions you’ll encounter when working at home. Having a separate office space can help minimise distractions, but ultimately it is up to you to stay focused.

Want to know more about Beechwood Homes?

With many years’ experience in building homes in NSW, Beechwood can work with you to design your new home around how you want to use it, including home office space, or even a granny flat for a permanent home office. Contact us today to start your Beechwood Homes journey.

in Latest News 171

Beechwood Homes has opened five new display homes at the new HomeWorld at Marsden Park and while there’s plenty of houses still under construction within the display village, Beechwood’s doors are open ready for viewing.

At Beechwood we know how important it is for our customers to view display homes and see the quality of our builds and the different options available, which is why we have homes in four Sydney display villages, two on the north coast, and three to the south of Sydney.

There are five homes on display at Marsden Park including: 

Brunello Four 28Brunello 4 28 web

A four-bedroom, two-bathroom, single-storey spacious family home with 258m2 of indoor, outdoor and garage area featuring a spacious master bedroom with ensuite bathroom and walk-in wardrobe, three additional bedrooms adjacent to a large bathroom.

In the living zone, the Brunello includes open plan living and dining alongside the kitchen, plus a home theatre room. The modern kitchen includes a large walk-in pantry and is located near the roomy outdoor patio. The Brunello Four 28 has many options to personalise the design to suit your family’s requirements and look.

VIEW THE IMAGE GALLERY 

TAKE THE VIRTUAL TOUR         

 

Bayswater Five Guest 37BWH HM Bayswater Five Guest 37 WEB

A generous four-bedroom, three-bathroom, double-storey family home with 342 total square metres of indoor, outdoor and garage area. Upstairs includes a large light-filled master bedroom with ensuite and walk-in wardrobe, as well as three additional bedrooms with built-in robes, large family bathroom, and a media room.

The highlight of the downstairs area is the spacious living space with large kitchen, family room as well as generous living and dining space. There’s also a guest room with ensuite bathroom, home theatre room, laundry, additional toilet, and outdoor eating area.

Like all Beechwood Homes, the Bayswater Five Guest 37 is available with different options and looks, including the Hampton facade on display at Marsden Park.

VIEW THE IMAGE GALLERY

TAKE THE VIRTUAL TOUR

 

 

Edgecliff Four 29BWH HM Edgecliffe 4 web

A four-bedroom, two-bathroom, double-storey compact family home with 272 m2 of indoor, outdoor and garage area. The Edgecliff Four 29 is great for narrow blocks and only requires 10 metres of frontage where a zero lot. The Beechwood designers have made this narrower design work with four bedrooms upstairs, along with ensuite bathroom and walk-in wardrobe for the master bedroom, and even a media room.

The lower floor includes living, dining and open plan kitchen, which opens out to the outdoor eating area. There’s even a home theatre room, separate laundry, and an additional powder room. 

VIEW THE IMAGE GALLERY

TAKE THE VIRTUAL TOUR

Barossa Four Guest Loft 30Barossa Four Guest Loft 30 WEB

A four-bedroom, three-bathroom cleverly designed home with 282 m2 of indoor, outdoor and garage area. The designers at Beechwood Homes have re-jigged the layout to use the underutilised roof space so the homeowner gets the same amount of rooms and space but can fit it on a smaller piece of land.

The upper storey, which is called a ‘Loft area’, still has a standard ceiling height of 2.4 metres. The home design has 50 m2 of upper-level space to accommodate two bedrooms, a study and a large bathroom complete with a bath. Downstairs the master bedroom with ensuite and walk-in wardrobe is complemented by an additional bedroom and a spacious living zone and separate home theatre room.

VIEW THE IMAGE GALLERY

TAKE THE VIRTUAL TOUR

WATCH THE VIDEO

Marlborough Four Guest 36BWH HM Marlborough 4 Guest WEB

A four-bedroom, two-bathroom, double-storey spacious family home with 344 m2 of indoor, outdoor and garage area. An ideal home for a family who likes to live and dine outside with a generous outdoor terrazza of 33m2. Also on the lower level is a large living area with dining and spacious kitchen, as well as an additional powder room and home theatre room.

Upstairs is the large master bedroom with ensuite bathroom and extra-large walk-in robe. There are also three additional bedrooms, a spacious bathroom, and media room to complete the space.

VIEW THE IMAGE GALLERY

TAKE THE VIRTUAL TOUR

Drop in for a visit to HomeWorld Marsden Park, Allott Street, Marsden Park

(02) 9765 0282 Open 7 Days 10am - 5pm

 

in Latest News 611

We have been listening to customers and have created a system that will ensure you are kept up-to-date on every stage of your build. We call it...

Beechwood Pulse

Build your home with peace-of-mind

So, Beechwood Pulse Portal, will it make your building experience easier?

Pulse gives you an open line of communication and mounds of information, to help guide you through your build. Our Beechwood Pulse Portal aims to break down the steps of the building process while giving you peace-of-mind.

How does the Beechwood Pulse Portal work?

When you have been through our display villages and found a design and façade that suits your family’s needs, you will sit down with one of our Building & Design Consultants to iron out your requested design elements. Once you are comfortable enough for us to go ahead with creating a personalised Tender for you, you will be provided with your very own Pulse login!

What many owner builders are unaware of, even if this is not their first build, is there are over 400 steps involved in building your home. We can’t simplify the building process, but we can simplify the steps into four stages:

-         Design

-         Pre-Construction

-         Construction

-         Maintenance

Access to the Beechwood Pulse Portal will help you track various steps and stages in the building process right from the very beginning. Your dedicated consultant will help you with the process by ensuring your paperwork is up to date and all documents have been submitted correctly.

Then, once building has commenced, the Beechwood Pulse Portal will be your ultimate source for all information and updates. Your dedicated team members will update the Pulse Portal with progress reports. 

Find out more

For further details on how the Beechwood Pulse Portal can help make your next building experience better, we recommend you:

in Latest News 1950

Located in Hamlyn Terrace and bordering the well-established suburb Warnervale, Hamlyn Grove on the Central Coast gives families a great opportunity to live in a brand-new Beechwood Home close to schools, shops, beaches and sporting facilities.

While its own quiet enclave, Hamlyn Terrace is surrounded by facilities including Tuggerah Westfield and Bateau Bay, beaches at Toukley, Budgewoi and Norah Head as well as great cafes and restaurants within a 10-minute drive.

Beechwood Homes currently has a limited selection of single storey house and land packages remaining in Hamlyn Grove to suit most family needs and priced from $569,000.

Why choose life on the NSW Central Coast?

Hamlyn Grove gives you an opportunity to escape the hustle and bustle while still within easy reach of Wyong's excellent schools, transport, sport facilities, hospital and shopping centre. The Central Coast is popular with young families, singles and retirees and provides the perfect place to build your new home in this growing suburb.

NSW Central Coast Home Builder

Beechwood Homes have been building in the Central Coast, Hunter and Newcastle region for more than 35 years.

in Latest News 947

Just like trends in interior design, Australian landscaping design has changed throughout the years particularly to incorporate trends such as drought-proof planting, topiary, lighting design and vertical planting.

Good landscape design is an important aspect of street appeal and can significantly increase the overall value of your home. Landscape design can allow homeowners to stamp a personal touch and showcase individual style. 

Bringing the indoors out is a common trend in interior design as well as landscaping. So it’s no surprise that four out of the top ten landscaping design trends include extending the indoors to the outside.

Here are top ten landscaping trends for your new Beechwood Home:

  1.        Outdoor fireplaces create warm and inviting outdoor entertaining spaces
  2.        Outdoor kitchens with the basic necessities can create a perfect go-to entertaining area outdoors
  3.        Sustainable design and going green remains one of the top trends in landscaping
  4.        Outdoor feature walls and vertical gardens can complement your home’s exterior style and design
  5.        Growing home-grown organic produce remains a popular trend
  6.        Modern and informal landscape designs that integrate outdoor lighting
  7.        Water features that incorporate rainwater harvesting
  8.        Themed garden spaces can create dedicated areas without having to run the same theme through the landscape design
  9.        Highly functional gardens with zoned spaces for entertaining, family and eating
  10.       Blended gardens that mix edibles and ornamentals offer bountiful vegetable and herb harvests w
in Latest News 1061

With property prices in Sydney and the rest of New South Wales falling, the banks copping it at the Royal Commission, and historically low interest rates starting to rise, lenders are putting the brakes on lending.

Lenders are concerned about incurring further reputational damage for approving loans that could quickly move into default, especially if interest rates start to rise. Lenders are also concerned that the property bubble may be starting to burst. In a rising property market, lenders can improve ‘iffy’ loans because if there is a default, the property can be sold at a profit and the bank will get its money back. But when the property market is in decline, if there is a default, the bank may not get all of its money back.

The above conditions are leading to lenders scrutinising loan applications closer than ever. Lending insiders suggest that approximately 25% of loans that were approved last year would be getting knocked back now.

With this in mind, there are a few useful tips to consider when making a loan application:

View your credit history

  1. It is very important to have a good credit history. More information is now available to potential lenders about borrowing candidates and lenders are able to obtain a better picture. If there are defaults, like the odd missed mobile phone payment, it would be a good idea to check that this has not impacted on your credit rating. You should obtain a copy of your credit history before applying for a loan. Making a loan application when there is a negative mark will likely lead to rejection and may make it harder to get a loan in the future.

Avoid job jumping

  1. Lenders want borrowers to have stable employment, because paying off a loan depends on having access to regular income. Red flags for lenders include a borrower changing jobs less than 6 months before applying for a loan or a jumpy employment history where people frequently move jobs every few years.

Avoid spontaneous spending

  1. Lenders are going through borrower’s bank statements with a fine tooth comb. They are looking closely to see where the money is going. Lenders want to see disposable income saved rather than excessive retail spending or out of budget impulse purchases. If you are looking to apply for a home loan, it would be a good idea to delay buying that pair of shoes or those golf clubs.

Avoid exaggerating on your application

  1. It is tempting to give a positive picture of our financial situation. However, the non-disclosure of liabilities or spending habits can lead to rejection if the lender finds out the position is not true. Given that lenders have access to more data than ever, there is every chance that the financier will find out if you tell the odd ‘porky’. What’s more, if the lender feels that you are not being up front with them, your application will go straight into the rejected pile no matter how good your financial position is. Once one lender rejects your application, it generally makes it harder to get approved by another lender.

Speak to a mortgage broker

Applying for a home loan is not something you do everyday. Get some help. Go and see a mortgage broker and get some advice. They tend to have a better picture of which loans will get approved by which lender. They may also be able to negotiate a better interest rate. But with any mortgage broker, make sure you ask how much you will have to pay for their service and whether they receive any commissions depending on the lender you go with.

in Latest News 1881