Establish Your Borrowing Capacity Before Making an Offer

Published on Thursday, 6 April 2017 at 12:00:00 AM

It is recommended that you check out your financial abilities early, research what you can borrow and select your finance provider prior to looking for your new property.

Making your offer first, then applying for finance is a sequence of events that puts unnecessary pressure on the buyer. It can often prove to be a costly mistake.

Have your finance broker or bank check the concessions and grants that you may be entitled to. This will help you establish what you can afford.

You can apply for a pre-approval of your loan. This can be a very positive approach when making an offer to purchase.

A pre-approval can make you aware of your limitations price-wise and provides confidence in your ability to purchase.

It is easier to match the price of your purchase with the funds available, rather than be disappointed if you cannot obtain the finance required for that “dream home”.

This advice and other information is available in a booklet produced by the Australian Institute of Conveyancers WA Division titled “A Guide to Purchasing Real Estate in Western Australia”, which is readily available from Sanford Settlements by emailing

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