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Are you looking to enhance your borrowing capacity and secure the best mortgage rates? As mortgage advisers in NZ, we’ve got you covered. Follow these six essential tips to maximize your borrowing potential and achieve your homeownership goals.

Seek Professional Mortgage Advice

Why navigate the complex world of borrowing capacity alone when expert help is available? Our experienced mortgage advisers will assess your unique needs and circumstances, providing personalized guidance and connecting you with suitable lenders. Save time and gain access to the best rates by consulting our knowledgeable team.


Boost Your Deposit

Increasing your deposit not only improves your borrowing capacity but also demonstrates responsible financial habits to lenders. Save diligently to accumulate a larger deposit, showcasing your commitment and reliability as a borrower. We can advise you on efficient ways to leverage the support of the “bank of mum and dad” if needed.


Create a Budget

Take control of your finances by setting a budget that factors in your income and essential expenses. Deducting necessary costs will reveal the amount available for savings. Consider automating regular deposits into a dedicated savings account, reducing the temptation to dip into those funds. This disciplined approach strengthens your financial position and enhances your borrowing capacity.


Test Your Budget

Before committing to a mortgage, simulate the experience by living as if you already have one. Allocate your current rent payment, along with your monthly savings, to a separate account. This exercise helps you gauge how well you manage the new budget and prepares you for the responsibilities of homeownership.


Manage Credit Card Limits

Lenders assess credit card limits when evaluating your borrowing capacity, regardless of your actual balances. To optimize your position, consider reducing your credit card limits or canceling unnecessary cards. Our expert advice ensures that your credit limits align with your borrowing goals.


Eliminate Short-Term Debts

Clearing “Dumb Debt” such as credit cards, personal loans, and hire purchases is crucial to strengthen your financial profile. Prioritize repayment by focusing on high-interest debts first. Consolidating your debts into a manageable home loan can expedite the repayment process, enabling you to meet the deposit requirements set by lenders.


Bonus Tip: Utilize KiwiSaver and First Home Buyer Grant

If you’re a KiwiSaver member, you may be eligible to withdraw your contributions and use them towards your first home deposit. Check if you meet the criteria, such as being a member for at least three years and using the funds for a primary residence. Our team can guide you through the process and explore additional benefits like the KiwiSaver HomeStart Grant and Welcome Home Loan.


By implementing these strategies and leveraging our expertise, you can significantly improve your borrowing capacity. At Twine Financial Advisers, we are committed to empowering you on your homeownership journey. Contact us today to take the first step toward securing your dream home.

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