Student Debt Help On Six Successful Strategies

Student loans look like a great thing when you are in school. Nevertheless, when you leave the school and have to start paying back them on a beginner’s earnings they are going to get hirsute. Student loans are notoriously difficult to get off also. Still a personal bankruptcy will not clear them. Student loans are forgiven only if you die or become constantly and entirely disabled, but you probably don’t want to go that far to eliminate your debt.

Nevertheless, if you’re stuck with your loan, there is student debt help available. The following six strategies may help you make up your payments.

Debt Help Strategy #1: Think about Loan Consolidation

After graduating, many students have to return two, three, or even more different loans. Instead of struggling to make your payments every month on time on several loans, why not bundle them altogether into one loan with one payment you’ve to make every month? Ask your lenders if they may offer any consolidation packages for your debt.

Debt Help Strategy #2: Change Your Payment Plan to Graduated Refund

By choosing graduated refund you can make lower payments at first. Over time, when you are coming in your business life and going to get established in a career, your income will arise and the monthly payment step by step rises as well.

Debt Help Strategy #3: Ask for Revenue Sensitive Repayment

If you’re jobless, or working for low payment, you may request that the monthly amount of money you have to repay on your student loan be based on your revenue. Since the amount of money you can afford to make your refund may only cover the interest, selecting this alternative means your loan will take longer to return in the long-term. But in the short-term, making refund depending on your revenue, can help you come through this harsh financial situation.

Debt Help Strategy #4: Ask for Extended Repayment

Most student loans are repaid over a time period of about ten years. An extended refund plan will cover the life of the loan up to a quarter of a century. This will decrease your amount of repayment every month, but you may find it too hard to expend the next 25 years repaying a loan you got out when you were a student.

Debt Help Strategy #5: Ask for a Deferment

If you’re in a financial trouble, by being unemployed, returning to school, being sent for military duty in another country, you may request a deferment or a temporary interruption of your loan repayments. Depending on the type of loan you have gotten out, interest still may keep going to accumulate.

Debt Help Strategy #6: Ask for Forbearance

If you’re in a hard financial time, you can ask for forbearance. That is a period of time up to one year where your loan refund may suspended. During forbearance, interest keeps going on to accumulate. Debtors are encouraged to pay the interest quarterly, or it will be capitalized and get part of the debt.

Often it isn’t easy, getting your feet under you when you have just ended up school. Nevertheless you may find various ways to get student debt help until you’re more well established in your opted career.

3 Strategies for Repaying Interest-Only Home Loans

It is a fact that the interest-only home loans are among the riskiest ones available in the market. Still, many people choose them because of the smaller interest-only payments which are made every month. If you opt for such a mortgage, you must have a precise plan for its repayment set into place. Compare the main repayment strategies which you can adopt and select the most suitable one for you.

You should have a clear idea of how interest-only home loans work in order to pick the right repayment strategy. Throughout the term of the loan, you will make only interest payments, which are smaller than the interest and principal payments made with traditional mortgages. At the end of the term, you will have to pay the principal amount in full. This is the challenging part.

Saving and Investing

While you pay only interest on your mortgage, you can set money aside during its term so that you can save enough for making the principal payment in the end. The problem with this strategy is that the interest rates on savings accounts and deposits are typically lower than those on home loans. That is why this option may not be cost-efficient. If you want to earn a higher return, you can build an investment portfolio in addition to using the traditional methods for saving. You have to take into account the higher risk, however.

Switching to a Standard Repayment Loan

This is the strategy used by most borrowers. You keep paying only interest while you have limited means. Once your income increases, you can switch to a standard mortgage repayment plan which enables you to pay a portion of the principal back every month. This is an effective strategy as long as you are certain that you will have sufficient disposable income to make the higher payments. You need to be certain that the new repayment structure will have favourable terms and conditions. Additionally, you have to be a disciplined borrower to ensure that you will qualify.

Re-Mortgaging

You can take out another mortgage at the end of the term of the first one in order to pay the principal. You can do this at any time during the term of the loan as well. This strategy can be highly beneficial if you are able to secure a lower interest rate on the new loan. This will work out if you have sufficiently high equity in the property and excellent credit record. You should be aware of the risks of using this tactic as well. You may get rejected for a new loan. If you get approved, you may be forced to accept less favourable repayment terms.

You should plan the repayment of the interest-only home loan extremely carefully.

3 Effective Mortgage Strategies

When you take out a mortgage, you have to think about the future. You need to plan your property ownership and loan repayment for the next 10 to 30 years. The good news is that there are some effective strategies for managing your loan which you can use directly. Consider three of the major options and find out which one will work out best for you.

Longer Term and Early Repayment

One of the most popular strategies involves taking out a 30-year fixed-rate mortgage loan and repaying it early. It offers several benefits. Due to the longer term, the monthly installments are much smaller. This makes the loan more affordable and keeps the risk of default down.

At the same time, you can use all extra money that you have towards the repayment of the loan. That way, you can repay it earlier and save on interest. It is true that the savings will not be as large as with a 15-year fixed-rate program, but you will have much greater flexibility with the smaller installments especially if your income suffers an unexpected blow.

This strategy will work out excellently for the average house buyer. The most important thing is for it to be applied in a disciplined manner. It is best if there is a precise early repayment plan in place.

ARM and Refinancing

This strategy is riskier, but it can pay off if used properly. You take out an adjustable rate mortgage in order to take advantage of the period with lower fixed interest and/or of the low interest rates in the market. It is easy to take out such a loan with low credit score and this is another major benefit.

After you have used the perks that come with the ARM, you refinance it with a 15 or 30-year fixed-rate loan. That way, you will enjoy affordable interest and low loan installments at all times. If you want to save on the fixed-term facility, you simply need to use a plan for early repayment.

There is one major requirement for the successful application of this strategy. You have to ensure that you will qualify for affordable refinancing. The most important thing is to boost your credit score.

Large Down Payment and Shorter Term

This mortgage strategy is suitable for individuals with large savings. If you can make a larger down payment, you get to save on the entire loan cost due to the smaller principal amount. With the short term loan such as a 15-year fixed-rate program, you will generate even greater savings due to the smaller interest amount that you will have to pay.

At the same time, given that the principle is smaller, you can expect to get lower monthly payments which should not burden your budget. If the installments start burdening your monthly budget at one point, you can readily consider refinancing.

Get a Car Loan With Bad Credit History: Four Strategies

People in need of a new vehicle and looking for a loan can often get discouraged if they have a poor credit history. Though it is true that finding a car loan with bad credit is difficult, it is by no means impossible. There are many lenders out there who specialize in working with poor credit and who will be able to get you a car loan.

The key to success in this search is doing the necessary research prior to purchasing a vehicle. There are several factors that go into a lender’s evaluation of a loan application. Bad credit will not be the only factor considered while looking for a car loan. The following four strategies can help you find the loan you need.

Strategy 1: Take an Honest Look at Your Credit History

It is true that good credit will make getting a car loan or any loan really, much easier than poor credit. Understanding the reasons for your bad credit score will help you to not only get a loan, but improve your chances of finding loans in the future. You want to make your credit better however, it is not impossible to receive a car loan with bad credit.

History of purchases, payments and other financial elements will generally help determine the credit score of each individual. Chronic late payments, too many loans, and large amounts of credit card debt will all contribute to your ultimate credit score. Concentrate on making timely payments, consolidating debt through personal loans and seek help from a financial counselor in order to help improve your credit score over time.

Strategy 2: Employment and Income

Aside from your credit history, your current income and employment history will be the other major factor in determining your likelihood of qualifying for a car loan. With bad credit, you need other factors to help endear you to lenders. Sufficient income to ensure timely payments of your car loan and steady employment history are two factors that can make the likelihood of receiving your loan much greater.

Strategy 3: Using Lenders Who Work with Bad Credit

Most conventional lending institutions, such as banks and community credit unions, have very high standards in terms of credit ratings. Therefore, finding a car loan with bad credit from one of these lenders is difficult if not impossible. Therefore, you need to look towards alternative lending sources, such as online private lenders.

Private lenders who work through the internet generally specialize in granting loans to those with bad credit. They understand the particular strains of your situation and can work with you to find a solution.

Strategy 4: Co-Signers

If you still do not qualify for a car loan through private lenders, a last option is to find someone to co-sign your loan who has good credit. Only approach very close friends or family members about this option. Make sure that you can make the payments each month and that you have a backup plan should you fail to make your payments. Co-signers give lenders insurance in regards to your car loan repayment, but defaulting on a co-signed loan can mean ruining your co-signer’s credit as well.

Car Loans with Bad Credit

History teaches us many things. However, when it comes to loans, it is not the only indicator of success. Though credit problems in the past can limit your ability to find a suitable car loan, bad credit is not the end of the line. You can find a loan by using these four strategies.

Stay Afloat Even With Bad Credit! You Can Get a $50K Loan

If you cannot secure a loan for a large sum of money from traditional lenders such as credit unions or banks, do not bear any ill will toward them. They may have turned you down due to a poor credit history. Be assured that you can stay afloat with a bad credit $50,000 loan.

$50K May Be Very Necessary

The amount of the loan may seem excessive, but without it there would be terrible hardship in the life of the borrower. The question becomes who is willing to lend that amount? The borrower will have to seek far and wide to find that lender. You will eventually find a lender who will work with you. Here are five strategies to consider as you search.

Strategy One: Get Feedback

Go online! Use Google or Bing to find financial feedback sites. You can glean much valuable information and even get a heads up as to who is offering these large sums. You will also learn how many of the potential lenders treat their customers. And you will find out how they fared and avoided pitfalls. You can also find tons of blogs discussing the large loan process. Word of mouth is valuable.

Strategy Two: Traditional lenders

Even though chances are not good, you probably should first approach a traditional, brick and mortar financial institutions such as a bank or credit union. You should do this especially if you have an account with one of them. Or, your chances could improve it your company has a credit union. Ask to speak to a loan officer. He or she should be able to appraise your financial situation and how lenders may be willing work with you. Still, should no offers be forthcoming, head back to the internet.

Strategy Three: More Than One

You may qualify for loans less than $50,000. This strategy is to spread that qualification to a number of lenders until you get the amount you need. Of course, with all these loans floating around, you will have to have a sound repayment strategy. If you choose this way, shop around to be sure you find the lenders most comfortable in terms of interest rates and repayment plans.

Strategy Four: Trusted Friend

This approach requires a very trusted friend or family member who has good credit and a good job. You will ask them to become the cosigner on the loan. With their assets of a good credit record and a good income, you will be more likely to get the large loan you need. Again, have a good payment plan. The cosigner should know that if you default on the loan at any time for any reason, that they will be obliged to take over the loan.

Strategy Five: Persistence Pays

Stick to it. Keep asking. Persistence will eventually lead you to a lender willing to talk to you and help you with your financial plans. Whatever you find, have a good repayment strategy. Since you already have a smudged credit report, if you pay this loan back as scheduled in your loan contract, it will help your credit scores considerably.

Loan Modification – Strategy Called Produce the Note Offers Hope For Borrowers

Homeowners seeking loan modification help need all the ammunition they can get when going to battle with their lenders. A new defensive strategy has emerged that may offer the firepower vulnerable homeowners need to stall foreclosure and convince their banks to agree to a loan workout solution. It is a defensive strategy called Produce the Note and it works like this.

Homeowners facing foreclosure through court action can demand that their lender prove that they indeed have the right to collect. Under due process, the plaintiff has the burden of proof to the court and must demonstrate that they are legally entitled to collect. When the homeowner challenges the bank to Produce the Note, they are simply holding the lender accountable to the rules that govern litigation. The note is evidence of the debt, so the lender must be able to show the note and that they have the right to payment under the note by proper endorsement or assignment. If the defendant does not challenge the case, the the court will usually simply assume that the action is legitimate.

One report estimates that up to 50% of mortgage notes have been lost or destroyed during the massive selling, dividing and securitizing of mortgages in recent years. So, odds are pretty good that your note might have been lost or destroyed. Using the Produce the Note strategy could help you get the loan modification help you need and deserve. When borrowers fight back against foreclosure, they are putting the ball back in the lenders court and holding them accountable for their actions, too.

This strategy has gained credibility with several recent rulings in foreclosure cases. A judge in Ohio dismissed 14 foreclosure filings brought by Deutsch Bank on the grounds that the lender could not prove it held the notes. Judges across the country are putting the brakes on hasty foreclosure proceedings and insisting that the filers follow the law stringently and ordering sanctions on lawyers who do not have the proper paperwork. It seems the courts are becoming more debtor friendly and are tired of creditors and servicer’s disregard for the rules that govern litigation. If someone’s home is being taken away, the least we should expect is that the paperwork is in order.

Produce the Note is a strategy that can be used to stall the foreclosure proceeding and buy a homeowner time to get the loan modification help they need to stay in their home. No one is advocating using this method to try to get something for free, but homeowners stuck with unaffordable loans should use every option available to them to induce their lender to modify their loan. Keeping families in their homes and stopping the millions of projected foreclosures is a win-win for everyone, and the lenders and servicers need to stop just talking about loan modifications and start offering help now.

If you feel like you are hitting your head against a brick wall and getting nowhere with your lender, then it may be time to use some other strategies to convince your bank to help you. Most lenders are offering the federal loan modification plan, Home Affordable Modification, but it can still be difficult to get your bank to pay attention to your application. Homeowners who are meeting resistance with their application should learn about all of the available strategies and options to have the best chance of success.

Borrowers can use the Produce the Note strategy if a foreclosure action has already been filed or they can simply demand that their lender produce the note at anytime. Interested homeowners should learn more about this effective method to find out if it might just help the in their fight to get loan modification help. There are certain letters and forms that need to be executed, and a procedure to follow, but it is relatively simple to do. This is one more weapon a homeowner can use in their fight to save their home, and using it along with several other proven methods can give a deserving borrower the chance they need to get a loan workout solution.

You can get the help you need to apply and qualify for loan modification by ordering and downloading the best selling handbook for homeowners, The Complete Loan Modification Guide. This is a low cost, easy to read home edition loan mod kit that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Learn how to apply and qualify for the Obama federal program too. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.

Loan Modification – Strategy Called Produce the Note Offers Hope For Borrowers

Homeowners seeking loan modification help need all the ammunition they can get when going to battle with their lenders. A new defensive strategy has emerged that may offer the firepower vulnerable homeowners need to stall foreclosure and convince their banks to agree to a loan workout solution. It is a defensive strategy called Produce the Note and it works like this.

Homeowners facing foreclosure through court action can demand that their lender prove that they indeed have the right to collect. Under due process, the plaintiff has the burden of proof to the court and must demonstrate that they are legally entitled to collect. When the homeowner challenges the bank to Produce the Note, they are simply holding the lender accountable to the rules that govern litigation. The note is evidence of the debt, so the lender must be able to show the note and that they have the right to payment under the note by proper endorsement or assignment. If the defendant does not challenge the case, the the court will usually simply assume that the action is legitimate.

One report estimates that up to 50% of mortgage notes have been lost or destroyed during the massive selling, dividing and securitizing of mortgages in recent years. So, odds are pretty good that your note might have been lost or destroyed. Using the Produce the Note strategy could help you get the loan modification help you need and deserve. When borrowers fight back against foreclosure, they are putting the ball back in the lenders court and holding them accountable for their actions, too.

This strategy has gained credibility with several recent rulings in foreclosure cases. A judge in Ohio dismissed 14 foreclosure filings brought by Deutsch Bank on the grounds that the lender could not prove it held the notes. Judges across the country are putting the brakes on hasty foreclosure proceedings and insisting that the filers follow the law stringently and ordering sanctions on lawyers who do not have the proper paperwork. It seems the courts are becoming more debtor friendly and are tired of creditors and servicer’s disregard for the rules that govern litigation. If someone’s home is being taken away, the least we should expect is that the paperwork is in order.

Produce the Note is a strategy that can be used to stall the foreclosure proceeding and buy a homeowner time to get the loan modification help they need to stay in their home. No one is advocating using this method to try to get something for free, but homeowners stuck with unaffordable loans should use every option available to them to induce their lender to modify their loan. Keeping families in their homes and stopping the millions of projected foreclosures is a win-win for everyone, and the lenders and servicers need to stop just talking about loan modifications and start offering help now.

If you feel like you are hitting your head against a brick wall and getting nowhere with your lender, then it may be time to use some other strategies to convince your bank to help you. Most lenders are offering the federal loan modification plan, Home Affordable Modification, but it can still be difficult to get your bank to pay attention to your application. Homeowners who are meeting resistance with their application should learn about all of the available strategies and options to have the best chance of success.

Borrowers can use the Produce the Note strategy if a foreclosure action has already been filed or they can simply demand that their lender produce the note at anytime. Interested homeowners should learn more about this effective method to find out if it might just help the in their fight to get loan modification help. There are certain letters and forms that need to be executed, and a procedure to follow, but it is relatively simple to do. This is one more weapon a homeowner can use in their fight to save their home, and using it along with several other proven methods can give a deserving borrower the chance they need to get a loan workout solution.

You can get the help you need to apply and qualify for loan modification by ordering and downloading the best selling handbook for homeowners, The Complete Loan Modification Guide. This is a low cost, easy to read home edition loan mod kit that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Learn how to apply and qualify for the Obama federal program too. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.

Residential Loan Modification Strategy

Many homeowners are checking out ways to accomplish a residential loan modification strategy that has worked for those who were apparently out of options. If you are one of the individuals who is seeking a loan modification read on to discover how others are building a new strategy that gives them all the ammunition they need to battle their lenders. This secret debt weapon is called ‘Produce the Note’ and it works!

In a foreclosure suit the court requires lenders to prove that they have the right to collect the debt. Under the guidelines of the law, the debt holder must prove to the court that they have the legal right to collect the debt. When the debtor challenges the lender to ‘Produce the Note’, the lender is accountable to the court in accordance to the litigation rules to prove the debt is owed and that they have the legal right to collect the debt. The note is the proof that the debt exists and the lender must produce the actual note to prove they hold the note and are entitled to payment.

Reportedly, up to half of all mortgage notes have been misplaced or annihilated through massive selling, divisions and securing mortgages in recent times. Odds are fairly good that your debt may have very well been misplaced or wiped out. Using the ‘Produce the Note’ action in court could assist in getting the loan modification strategy that you need. When debtors battle foreclosure, they put the ball back in the note holder’s court and hold them accountable for their transactions also.

This loan modification strategy has gained believability as several rulings by the courts have been in the favor of the person with the debt. Judges all around the country are putting note holders on notice that they must follow each of the laws that concern note collection and must hold up on foreclosures until all proceedings are complete. This method has successfully been used to hold off the foreclosure proceedings and allows time for homeowners to become able to access a loan modification that helps them stay in their residence. No one advocates cheating anyone out of what is owed to them, but this does help homeowners who are drowning in unaffordable loans.

For those who feel as if they are backed up against a brick wall and are not able to find relief from lenders, it may be time to use this strategy to convince the individuals concerned that a loan mod is the best plan of action. Many banks and mortgage companies are offering their clients federal loan modification plans that are from the Home Affordable Modification that the government has designed to help families stay in their homes and the lending institutions receive the money owed for the mortgages.

Those faced with foreclosure that has already started taking place can use this strategy to buy time, obtain a modification loan and restructure their debt into manageable amounts. This is the best solution when lenders refuse to negotiate lower terms on interest rates and borrowing charges. This course of action has worked for many and may work for you as well.

Six Home Foreclosure Prevention Strategies

Anyone facing home foreclosure knows how stressful and devastating it is. Individuals experiencing temporary financial setbacks must be proactive in contacting their lender to determine if they are eligible for foreclosure prevention strategies. Contrary to popular belief, banks really do not want to foreclose on properties unless no other options exist.

Several home foreclosure prevention strategies are available. The method used is determined by multiple factors including: loan payment history, credit score, ability to make future payments, and employment status.

Delinquent loans are managed by the lender’s loss mitigation department. Borrowers are assigned to a loss mitigator who will help devise a suitable payment plan to cure mortgage arrears or develop strategies which lessen the blow of foreclosure.

To achieve a successful outcome, borrowers should have a basic understanding of available options. Mortgage lenders typically offer options which minimize their financial losses and might not be forthcoming with all available strategies. Those who become familiar with foreclosure prevention options will have a better chance of reaching an agreement that can lessen credit damage.

The simplest and least costly option is loan deferment which allows mortgagors to skip up to three loan payments. Missed payments are rolled to the end of the loan and payment terms extended. Banks usually require borrowers to submit financial records to show they have the financial means to make future payments. Lenders often require borrowers to submit a letter of hardship outlining details that led to mortgage default.

Real estate forbearance agreements allow borrowers to skip up to 12 payments. However, banks usually limit to 3 or 4 payments. Once the forbearance agreement expires borrowers must pay the full amount of missed payments. This option is best suited for individuals facing temporary setbacks and certain they can pay missed loan payments on the due date. Otherwise, mortgage forbearance could lead to foreclosure.

Loan modifications involve modifying loan terms. Banks can either temporarily reduce principal amounts or offer a reduced interest rate. When mortgage loans are modified, the terms are extended to recapture reduced payment amounts.

Mortgage refinance requires borrowers to take out a new home loan to pay off the existing mortgage. Refinancing is best suited for individuals with good credit and the financial ability to pay refinance rates. Borrowers are responsible for costs normally associated with taking out a home loan including real estate appraisals, home inspections, loan application fees, legal fees, and closing costs.

Mortgagors who can no longer afford home loan payments might qualify for real estate short sales or deed in lieu of foreclosure. Both strategies can cause serious harm to credit ratings. Borrowers could be held liable for deficiency amounts between loan balances and the actual sale price of the property.

Real estate short sales are rather complicated and take several months to complete. The process of short selling varies by lender, but involves selling the property for less than is owed on the home loan.

Deed in lieu of foreclosure requires borrowers to return their property to the lender and vacate the premises. Although a mutual agreement between banks and borrowers, this strategy is reflected as a home foreclosure on borrowers’ credit reports and will be reported for up to 7 years.

Mortgagors must be proactive in communicating with their lender in order to prevent foreclosure or minimize impact to credit scores. Individuals who ignore phone calls and collection letters will limit available options and eventually face the harsh reality of foreclosure.

Approved Home Loans With Bad Credit Made Easier Through 3 Simple Steps

Having a bad credit rating can be something of a hindrance when it comes to seeking a large loan. So, when it comes to seeking a home loan with bad credit, it is only to be expected that lenders would hesitate.

However, as with all financial arrangements, so long as the necessary criteria are met, and an ability to repay is confirmed, the chances of approval are high.

The good news is that securing loan approval is much more straightforward than many expect, and that by taking some simple steps the chances of enjoying a successful application is increased considerably. These steps range from the applicant getting an accurate impression of their actual credit status, to taking the time to locate the home loan with the best terms.

Knowing the True Financial Status

Examining the true state of their financial status helps applicants to work out their best options when it comes to making an application. When looking for a home loan with bad credit, convincing lenders that their investment is safe can come down to the smallest details. And so an accurate credit score can mean the difference of several thousand dollars per year in interest repayments.

It is always worth getting the credit score that is quoted reviewed. This is because it is always possible that past loan repayments or a recent loan that was cleared can sometimes slip through the net. This brings the score down, increasing the rate of interest to be charged, and thereby making the overall cost too much to afford. Securing loan approval is dependent on proving that repayments are affordable.

An accurate credit report can also be a sound basis on which to develop a loan strategy. Home loans are huge undertakings, so some pre-planning may need to be done to prepare the way before plunging into that level of debt.

Search for the Right Deals

Of course, finding the right lender with the right deal is all important too. Because of the reluctance that many lenders have in approving applications for home loans with bad credit, choosing the most receptive lender reduces the chances of rejection.

It is also worthwhile when the real terms are often hidden from view, and a variety of costs and fees are often found in the small print. Taking the time to search for the right lender is hugely beneficial, and the most productive way is to go on the internet. The range of offers that online lenders have can save significant amounts, which only improves the chances of securing loan approval.

However, when good deals are found, it is advisable to check out the lenders with the Better Business Bureau. There is always a chance of being caught out with home loans offered by unscrupulous lenders.

Consider a Larger Down Payment

A down payment can be very influential when it comes to convincing lenders to approve a home loan with bad credit. Since most lenders offer a maximum 90% mortgage, it means that 10% of the purchase price must come from elsewhere. This usually means a lot of saving in the build-up to making the application.

But the more that is saved the better the chances of securing loan approval. After all, a 20% down payment means that 80% of the purchase price is required as a mortgage, and with the sum to borrow reduced, managing the debt becomes easier too.

This has an overall positive effect on the lender, who know that borrowing $180,000 instead of $200,000 makes for savings of $200 – $400 per month, depending on the terms of the home loan. This can greatly decrease the risk of missing repayments.