First-timers must show ability to repay their loans
First-time buyers need to be aware of repayment capacity issues when seeking credit in this market, writes Karl Deeter.
In our brokerage, we have been looking at the most common reasons that first-time buyers get postponed or refused a loan. The overwhelming reason (about 90 per cent) is due to repayment capacity.
Repayment capacity doesn’t mean you can’t pay the loan (while it does often mean that too), it can mean that you can’t demonstrate that you can pay a proposed loan and we see this even in people who earn €200,000 ...
