Balancing your personal equity with cash flow

By the resi financial blog team, 05 September 2013

Personal equity and cashflow

Applying for a first home loan can be a lot to deal with - from organising financial documents, to meeting with home loan specialists, the whole process can be a little stressful for some.

The last thing that you need when sorting out your home loan is a bump along the way.

One of these bumps may be related to your income and equity, such as having the two out of balance with another.

This can occasionally cause issues during your application process, as not having an adequate regular income may limit your home loan options.

In order to help keep your equity and cash flow levels in harmony with one another, here are some tips you may wish to consider.

Increase your income

Getting another income source is a great way to help increase your regular cash flow. This may be through working more hours, asking your partner to enter the workforce if they are currently staying at home, or upgrading your job.

Get a boarder

If you are currently living in a home with a spare room or two, then you may want to look into getting a boarder or flatmates to stay at your property. Many people around the country do this to keep their living costs down, and the rent that they pay you makes a great way to boost your income.

Borrow money from family

As buying your first home can seem like a daunting task, you might want to look into borrowing money from a family member to go towards your first home loan. This will help to increase your equity, which is a factor that many mortgage lenders look at during applications.

Getting a small financial boost from family members will also allow you to borrow less through your home loan, and in turn reduce the amount of interest that you will have to pay over the long run.

For some of the best fixed interest rates around, contact a resi loan specialist today for advice and assistance.

Categories: Home Loans