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First Time Borrowers

Home Loan Checklist

When you apply for a loan with The Mutual you should check out our handy checklist before you meet with one of our lenders.

This will give you an idea of what The Mutual is looking for when assessing your loan, and also speed up the loan process. 

Loans need to fit within your budget

How much you earn a year is a key factor in determining how much you can borrow. It is important for you and The Mutual that you don’t financially over commit yourself.

Demonstrate Your Savings History

You don’t need to get a loan to get a credit history. A record of your savings history will achieve the same thing.

Borrow for Something Tangible

When you borrow money make sure it's used for something tangible such as a house or car. Try to avoid borrowing for something that once purchased has no value, such as consumable items or travel.

Think About Your Lifestyle

Just because someone says you can borrow it, doesn’t mean you should. You need to consider how any loan repayments will affect your lifestyle and most importantly what you are going to miss out on in order cover your loan repayments.

When using Loan Calculators, Add a Bit Extra On

Some Loan Calculators are based upon a minimum standard of living and most don’t consider changes in your life that can affect your financial situation, such as changing jobs or having a baby. Therefore, when using these calculators it’s important to consider some financial “breathing space” to allow for such events.

Align the Length of the Loan with the Purchase

Align repayments over a similar timeframe to the life of the asset you are purchasing. This will avoid creating debt with no asset. For example, if borrowing for a brand new computer with a five year loan, it is possible that within two years you will be paying the same amount per week for your now old and possibly out-dated computer as you were when it was new.

Look at the Frequency of Repayments

The interest on loans is normally calculated daily. Making repayments weekly or fortnightly, rather than monthly has the potential to save you both in interest and the term of your loan. If you can afford it, pay a little bit extra as well.

Look after your Credit History

It’s important to repay a contracted debt within the time stipulated. Every time you fail to do so, it is recorded against your credit history. This will affect your ability to obtain any future loans.

Focus Your Repayments

If you get yourself into too much debt, focus your attention on repaying the loan with the highest cost first. This can reduce the cost of the loan and the repayment term.


If you have any questions, please contact us