Ready and set
Dean McGuigan of Golden Homes on locking in your lending before Christmas.
The holiday season is a wonderful time to relax, spend time with family and celebrate the year gone by. But for anyone planning to build a new home, it’s also the perfect opportunity to get your finances and plans in order so you can start the new year ahead.
One of the smartest steps you can take before Christmas is to lock in your lending. Interest rates can fluctuate, and having your financing confirmed before the festive season gives you certainty and peace of mind. Banks typically require at least six months of clean, well-organised bank statements to assess your application. With holiday spending on the horizon, having your statements ready beforehand makes the process smoother and avoids last-minute complications. Securing your lending first ensures that your home plans remain realistic and achievable, even amidst the holiday festivities.
Understanding your financial position and goals is just as important. How much deposit do you have? What can you comfortably afford in repayments? What are your long-term financial objectives? Being organised with clear bank statements and a thorough understanding of your finances helps banks process your application more quickly. It also gives your builder confidence to provide options that truly suit your circumstances, and your budget.
Budgeting is another crucial element. It’s not just about limiting spending – it’s about making informed decisions and avoiding surprises later. Every choice, from the home design to finishes and fixtures, has a financial impact. Tracking your expenses and keeping your accounts tidy now makes it much easier to stick to a budget. It ensures your dream home remains achievable without stress.
Working with a mortgage broker and a building company simultaneously can significantly streamline the process. Having a “live contract” ready for your bank shows exactly what you plan to spend, which can speed up approvals, reduce delays and increase your maximum lending. Tidy, well- documented bank statements at this stage can make the difference between a smooth approval and unnecessary back-and-forth with the bank.
We strongly encourage people to secure their pre-approval before the holiday season. This gives certainty on your borrowing capacity and allows you to act quickly when the right opportunity arises, whether it’s securing a particular section or locking in a house and land contract. By preparing your finances now, including ensuring bank statements are complete and organised, you’ll be ready to start building your dream home confidently in the new year.
