Refrain from these 3 spending habits to secure future bond

Don't allow your credit score to drop

As difficult as it may be right now, aspiring buyers need to make sure that their credit score doesn't get marked over this time. It can take months and even years to clean up a credit score if you miss a payment or fall into bad habits with your repayments. Do whatever you can to ensure that all debt repayments are made on time and in full every month. Remember that the worse your credit score, the lower your chances of bond approval and the higher the interest rate the bank will provide on the loan.

Don't take on additional debts

As tight as your household budget may be, try and avoid purchasing anything on credit at this time. The high interest rates make credit purchases incredibly expensive right now, but it also cuts into your disposable income. If possible, try to pay off as many debts as possible to increase your affordability levels. Disposable income is a key element to bond approval and acquiring a higher home loan amount.

Build up a stable employment history

For those who plan on purchasing a property within the next year, it is important to know that financial institutions require a stable employment history of around 6-12 months. If you happen to be retrenched or decide to change jobs, your loan application might not be approved until you've been employed for a long enough period of time. If you can avoid it, try not to change jobs just before applying for a home loan. Rather wait until enough time passes before submitting a home loan application.

"While many first-time buyers might struggle to afford a home loan right now, monitoring their spending and making some smart financial decisions now will increase the chances of bond approval in the future. How they behave now will make all the difference to their ability to purchase property at a later stage,"