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If you type “how to get a loan with” or “how to buy a house with” in Google, you’ll find that how to get a loan with bad credit and how to buy a house with bad credit are included among the top suggested inquiries in the search engine.

This only shows that most online users often search for these questions, giving us an insight that many people planning to purchase a home usually find it challenging to find banks and lenders to get a mortgage or loan.

But undeniably, it’s not that surprising to discover that many individuals have a hard time getting their loan applications approved. After all, banks and lenders are usually very meticulous when screening and evaluating. And as a result, only a lucky few are approved.

To make matters worse, you’re unlikely to get a hefty amount from these agencies, especially if you have low or bad credit. Thus, the only way to achieve success in such ventures is to make an effort to increase your borrowing power. With that said, here are three simple tricks to boost your chances of borrowing more money when buying your first home.

1. Make Simple Adjustments on Your Living Expenses

Unbeknownst to many, lenders don’t just take income and debt factors when evaluating whether to approve your loan application. They also pay close attention to your monthly living costs and expenses. This includes your utility bills, household costs, personal purchases and many more.

This is why most lending companies ask borrowers to declare the cost of living expenses in the application. And if your living costs fall above the household expense measure (HEM) rate, then you’ll have to hold back on splurging to boost your borrowing power.

2. Pay off Majority of Your Debts before Borrowing Money

Here’s the bitter truth, if you have a lot of liabilities and debts, your chances of having your mortgage application approved is close to none. Additionally, the amount of debt you have plays a critical role in how much your lender is willing to give you.

For this reason, it would help a lot if you paid off all your existing financial obligations before you apply for a loan. The fewer the debt, the better. Hence, you must try to settle all your debts as soon as possible to start your mortgage with a clean slate.

3. Make It a Habit to Review and Check Your Credit History

It’s already common knowledge that your credit score and history are significant factors lenders consider when deciding on mortgages and loans. In fact, you need to have a credit score of at least 620 or higher to qualify for conventional loans. Thus, it only fits to review these things before heading towards a lending company.

In addition to this, it’s vital to keep in touch with credit reference agencies to understand if you need to build up your credit score. There are also instances when individuals fall victim to identity theft, which can adversely impact credit records. Hence, you must constantly review these details for higher borrowing power.


Contrary to what others think or say, it’s not at all that difficult to raise your borrowing power and increase your chances of getting a mortgage. And as long as you keep the tips listed above in mind, you’ll find that it’s pretty easy to get the funds for buying your first house.

Wealthy You is one of the leading lending organisations in Australia dedicated to offering clients various mortgage solutions to meet all their financial needs. If you’re looking for alternative mortgage funding for purchasing your dream home, give us a call today!