The process of obtaining a home loan can be overwhelming and stressful, leading to misinformation and misunderstandings. In this blog post, we will dispel some of the most common myths about home loans and provide tips to increase your chances of approval.

Myth #1: A 20% deposit is necessary to buy a home. While having a 20% deposit will give you more borrowing power and help you avoid paying lenders mortgage insurance (LMI), it is not a requirement. Many low deposit home loan options are available, and government schemes may be available for first home buyers.
Myth #2: Perfect credit is necessary to qualify for a home loan. While having good credit improves your chances of being approved, it is not essential. Many lenders are willing to work with borrowers who have less-than-perfect credit.
Myth #3: Self-employed borrowers have difficulty getting approved. While it may be harder for self-employed individuals to get approved, it is not impossible. Providing documentation of income, such as tax returns and bank statements, can increase your chances of approval.
Myth #4: Fixed rate loans are always better than variable rate loans. The best loan option depends on your individual circumstances and financial goals.
Myth #5: A 20% equity in your home is necessary before you can refinance your loan. There are lenders who allow you to refinance your loan with as little as 5% equity, although additional costs may be involved.
At OVM Finance Group, we strive to provide our clients with the best possible advice and tailored solutions to their individual needs. With our years of experience, we can guide you through the process and get your home loan approved.