Can you be too Competitive?

I am a pretty competitive person, have been for all of my life.  But are there times when you can be too competitive?   When it comes to the mortgage process being too competitive can come with risks.

Highly competitive people can see the process of landing a mortgage, and or being approved for the maximum possible loan, as a bit of a game - and they play that game to win.  I’m fully supportive of getting a loan and getting the highest approval but you have to be careful that the emotions of ‘winning the process’ does not get in the way of the reality of whether or not you can afford the repayments of the loan, as well as being able to have funds for your other costs and to spend on yourselves.

When it comes to declaring monthly expenses a mistake really competitive people make is saying they’ll pull back this or discontinue that so that, on paper, they can max out their borrowing.  When they have the loan, and need to make repayments, will these cost reductions actually take place?

The whole application process is there to give lenders confidence that, if you pass their servicing test, you’ll be able to make the required repayments. You should also see the process as a sense check to make sure it’s right for you too.  You need to sit back and think about the actual repayment amount, plus annual rates and home insurance, and how that fits into your current or future lifestyle.  How would you feel if you took out a loan and not be able to live your life as you’d like?   Not great probably.

The last thing you’d want is to get yourself into a situation where you can’t live the life you want or, more importantly, a position where you are really struggling to meet your obligations.

I believe that erring on the side of caution during the application process will put you in a good place when you have your loan.  Getting good advice from an expert mortgage broker is essential in this regard as we can tell you the likely repayments pretty early on in the process. So, feel to reach out here or below with any questions or if you want to chat.