If you’re ready to take out a home loan, firstly, you need to learn how to manage your finances. For most, only when they start shopping for a home loan, they realise how much they’re borrowing capacity is.
Your income determines your borrowing capacity and how quickly you can repay the loan. Therefore, it’s important to have a steady stream of income to improve your chances of securing a loan. This is why it is easier for professions such as doctors, to secure a home loan compared to people from other professions.
Here are a few steps that will enable you to increase your income to put toward your mortgage.
Rent a Portion of Your House
Do you have a spare room in your house or an unused granny flat? If so, rent it out. The market is full of opportunities. For example, you can rent out your house on Airbnb. Having another source of income is very helpful in the long run. You can set an Airbnb style empty space and rent it out whenever you want.
This will get you extra cash as a side income. It also improves the inflow of money and increases your chances of getting a home loan.
Make Sure You are Not Underpaid
It is very important to find out if you are getting a competitive salary. Carry out a market research to see if your salary matches your skillset. You can also talk to recruiting agencies as they are familiar with the market and pay scale of different positions. Gathering this information will help you make a case and you will be in a better position to talk to your employer about a pay raise in the next appraisal.
If you think you are underpaid and your boss is not willing to increase your salary, you should look for a new job. Moving from one job to another is not easy, but if you wish to upgrade your lifestyle and stay competitive in the market, you should make an effort. A proactive approach to life goes a long way. You should always seek better opportunities because monetary growth is also important for financial health.
Learn More Skills
In addition to exploring the market for a new job, ensure you are learning and developing new skills. Learning at any part of your life will only help you grow in ways you can never imagine. If you have a passion for design, you can learn graphic design skills and use it to earn side income. You can also take short teaching courses to work as a part-time teacher or learn IT skills that may help you make money.
Adding new skills to your resume increase your market worth. You can also get a promotion if you employ your skills to improve the operations at your workplace.
Put your existing as well as new skills to good use whenever you have spare time over the weekend. Find a second job and work part-time to make extra cash. For example, you can be an Uber driver whenever you have time, or you can work on Airtasker. You will be surprised as to how much money you can make with these resources.
When it comes to making financial decisions and achieving the targets, think wisely. Never stop chasing your goals. Follow your passion and work hard as it will open so many doors for you to make money. You never know when you might end up making a career change. So many people turn their passion into a full-time career after working a few years in their regular job.
At the end of it all, you must understand that money is just a tool. You can use it to fulfil your dreams, such as buying your first house or moving to a new one. Therefore, do whatever you can to make the most of your time and skills. This will help you materialise your dreams sooner than later, such as buying your dream car or living in your own house.
Speak to Hunter Galloway about you can increase your income to put towards your mortgage today.