Business Telegraph

The Entrepreneurs

Getting a Home Loan During Covid Pandemic: Things We Should Know

  • Written by Lilly Miller

There`s no sector in the world that has not been affected by the COVID-19 pandemic, banking included. One of the biggest changes we have experienced is the temporary shift in landing policies that banks and landers impose on people looking for a loan to buy property. The current economic climate made it harder to get a loan than ever before, and since we’re still experiencing waves and waves of pandemic, it’s impossible to predict what awaits us in the future.

If you’re considering buying a property this year, make sure to learn as much as you can about the changes so you give yourself a head start when securing a good home loan regardless of the pandemic.


Changes to keep in mind

Lenders have put in place various changes due to the COVID-19 pandemic since many borrowers experience a reduction in workload, hours and salary. Some even experience redundancy and business closure. Since banks and lenders use risk to determine home loan approvals, the uncertain economic situation translates to more restrictions when determining the amount of money they are willing to land. However, not everything is as bleak as it seems. When it comes to benefits when securing a loan in today’s climate, you can expect lower interest rates, increased incentives, digitization of processes and increased government support.


Key criteria lenders are focusing on

As always, lenders are considering various factors when approving home loans. Occupation is one of the main ones since lenders want to know if the industry you are in has been heavily impacted by COVID-19 (travel, hospitality, entertainment, etc.) Your position is also important, and banks are hesitant to land to contractors and casual employees. Due to the increasing pressure on rental prices, many lenders are only taking into account 60-70% of the gross rental income compared to the full amount before the pandemic.


Questions you can expect

Some of the questions you can expect during your home lender interview are: Tell me about how COVID-19 affected your business/job? Do you expect a reduction in income and work hours? Is your rental income stable? Are you informed about the future changes that can impact your job? Do you believe you’ll be able to return to your normal work routine and financial situation after the pandemic is over?


What to rely on?

Even though the situation is not the best, people all over the world are getting approved for home loans, you just need to know where to turn. If you don’t know much about real estate work and loans, you can rely on home loan comparison tools to help you with the process. Websites like Rate Seeker are very easy to use: figure out your problem, compare home loan rates and seek approval. The company will negotiate lower home loan rates that fit your particular situation. With expert advice, you’ll make better financial decisions and find the best loan even in the middle of the pandemic.


Circumstance changes as the biggest risk

In many cases, if you get fired during the time between home loan approval and settlement, you might be forced to look for money somewhere else or consult with other lenders for purchasing help or refinancing. If your application is time-sensitive, this can be very stressful. However, some lenders still continue to settle loans, but this depends on their risk appetite.


How to further boost your chances?

To boost your chances of securing that loan, besides consulting with professionals, you also need to minimize your unnecessary spending and increase your deposit since lenders love borrowers with good saving habits. Also, minimize your unsecured liabilities like credit cards, overdrafts, After Pay and similar, and ensure your credit score as a first-time homebuyer is high. When presenting your home loan application, make sure it is comprehensive, outlining your strengths.

Securing a home loan will definitely bring you one step closer to owning a property, but this process is not easy, especially today. However, with these tips in mind, you will find the right lender and become a homeowner in no time.

Entrepreneurs & Leaders

5 Tips for Effective Workforce Planning in 2021

Do you know if your employees can handle the incoming workload without issues? Do you have seasonal fluctuations in ...

How to watch US Netflix with a VPN

Netflix is a streaming site that has gained popularity across the globe is easily accessible from any geographical l...

Why You Should Be Buying Bitcoin

Just a few years ago, punters used to wait for a couple of days, and sometimes even weeks, to withdraw their winning...

Reviewing the Pros and Cons of the Trustpac Online Investing Platform

Global and local Australian financial markets are still posting elevated volatility, even though the pandemic started mo...

A shot of Scotch whisky history

The history of Scotch whisky is almost as rich as the drink itself. Scotch has been distilled and distributed from S...

3 tips for quickly paying off your student loan

It’s always good to be ready to pay off your student loan. After all, the faster you pay back the loan the cheaper i...

Getting a Home Loan During Covid Pandemic: Things We Should Know

There`s no sector in the world that has not been affected by the COVID-19 pandemic, banking included. One of the big...

Design difference of a premium business card vs cheap business card

Despite the great influence that the nascent modern technologies have had on current professional and business trans...

Try These Amazing Ways to Get Top Cash for Used Cars

Have you ever thought you can get top money for your unwanted or wrecked car? In case you have an old, harmed, destroy...

Gorgeous Hair in Minutes: How Much Do Hair Extensions Cost?

Not all women are blessed with long, voluminous locks. That's why it's no secret that they turn to hair extensions t...

Business Consulting Services Benefits

Consultants work very closely with managers and business owners to offer advice, identify challenges, and propose us...

Trading business

Taking part of the possibilities that trading is offering is something that more and more want to take. But the hurd...

The real estate market today

Real estate is an industry that was designed and intended from the ground up to function and thrive as the foundatio...

5 things to remember when hiring a bookkeeper

When a person is looking to hire a bookkeeper for their business there are some important considerations that a pers...

How To Play at an Online Casino?

Online casinos have become popular over the years because of their large catalogues of games and various player bonu...

How To Start A Real Estate Business

If you're tired of your 9-5 job, maybe it's time to get into the business world. Through your company, you can earn ...

The evolution of gambling - from scratch tickets to online play

If there is something incredible about the evolution of the world, is how incredible the gambling industry has chang...

The Most Profitable Sports To Bet On

You have ever asked yourself what the most profitable sport to bet on is? Well, this is a good question, but it doesn't ...

Top 4 Modern Water Conservation Methods in the Time of Climate Change

Water is probably the second most important thing that all living creatures need to survive (after oxygen or air), a...

Must See Places When Travelling to Dublin

Dublin is the capital of the Irish Republic of Ireland and one of the best places to visit to experience the rich cu...

Brand Design Trend 2021

Many businesses are built and become successful almost at the same time. These overnight success stories are what ev...

About Glenmorangie 12 YO Malaga Cask

If there were a group of friends and they were at a restaurant and it was their first time there and they had no ide...

WordPress Site Design Tips for Small Businesses

Are you using WordPress to build your company's website? Do you have your site hosted and ready to design? If so, then...

Best Electric Scooters for 8 to 12-Year-Olds

So your child wants you to buy him an electric scooter but you are not sure which model to pick. Unlike before, buyi...

Writers Wanted


News Co Media

Content & Technology Connecting Global Audiences

More Information - Less Opinion