In this episode of his vlog Henry has some handy hints for people looking to buy a home in the near future. It’s getting tougher and tougher to borrow money from the banks, but with some conscientious lifestyle and spending adjustments it’s possible to get that loan you need. Here’s Henry’s take:
“Hi. I’m Henry Wong for Remax United Vision. We’re here today to talk about buying. With the current state of the market and the banks being quite tight with lending and also getting really nitty-gritty with your expenses, I suggest if you’re looking to buy let’s say in a year or two’s time, the best bet is to start now. From now, for the next 12 months, try to keep your expenses at bay because at the end of the day, the banks want to calculate how much disposable income do you have left, your income from your job minus your living expenses.
See, at the end of the day, your bank statements don’t lie. If you buy pizza every single day and tap, it doesn’t lie. You want to keep that to a minimum so when the banks look through all the statements for the last 12 months, they go, “Okay, you know what, your expenses are actually this much, but your income is this much. So your net income minus expenses is this much. That means you can borrow more from the bank.” Similarly, if you’re a sales person like myself or if you run a business, generally, most banks want to look at two years of financials. You want to keep your expenses low and your income I guess steady so that your net income is much higher.
At the end of the day, you want to borrow from the bank, try to minimize your expenses so it shows on your bank statement and also on your taxable income, on your tax return as well. Best bet is to talk to your accountant for any financial advice and also, if you have a financial planner, speak to them as well.”
