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Last week we tackled the issue from a higher level/ strategic standpoint. We discussed how consumers can approach the borrowing process both in terms of formulating a strategy, and finding reliable people to speak to. (you can listen here)
Today we’re providing some more tactical guidance around how loan applications can present more favourably to the banks. Unless you’re in the industry and lodging multiple applications each and every week it’s near impossible to know what the banks are looking for and how best to maximise your chances for success.
We cover the following topics in detail:
- What it means to ‘shape up’ for the banks (find out how the banks now assess living expenses, credit card limits, other commitments, etc. Do you know your credit score…? Find out why being a ‘good money citizen’ is important)
- Get your paperwork in order, and disclosing everything (we discuss the risks associated with non-disclosure, also the problems with providing incomplete/ missing information)
- Think ahead… understand how your circumstances might change in 12-24 months, and how your borrowing capacity might be affected as a result of this
Lending conditions might be tighter now however the banks are still very much open for business. The better operators would still be converting at least 90% of their loan applications to approval.
You just need to know how to play by the rules, which in the current market, are changing rapidly…
Best of luck and enjoy the show!
If you have specific questions for myself or Patrick you can email hi@longproperty.com.au and we’ll respond within 24 hrs.
If you liked this episode you can subscribe to our Long Property Show podcast here.
The Long Property Show provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. Nothing in the Long Property Show constitutes legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.
