Home Loan Solutions

“ Responsible Lending • Make responsible inquiries about your requirements and objectives and financial situation. • Verify this information • Ensure we give you responding lending documents at appropriate times • Document your actions and requirements As brokers, we are required to follow a number of steps before a preliminary credit assesment can be made. These Steps Include: Each lender has its own policies and procedures however at a basic level lenders need to ensure: Credit History Lenders will undertake a comprehensive credit check. The information they will receive includes but is not limited to: • Personal details • Credit inquiries made • Listing of any directorships • Employment information • Repayment history and conduct • Listing of any defaults Equity/Savings This is the overall equity position or your share of ownership. Equity is usually in the form of either ‘bricks and mortar’ i.e. property or cash deposits. It can also be a combination of both or these components. Income Servicing This is one way a lender determines your affordability. Lenders will take into account: • Your income • Living expenses • Living arrangements (e.g. Dependants) • Tax debt • Source of income • Credit card limits (the higher the limit, the less you can borrow) • Other loans • Type of employment (e.g. self employed, casual employment) Lending Requirements 3 Tiers of Lending BORROWING CAPACITY INCOME / SERVICING CONSIDERATION Income Liabilities - Home Loans - Investment Loans - Credit Card Limits - Hecs / Help - Other Outgoings Living Expenses Number of Dependants BORROWING CAPACITY EQUITY / DEPOSIT BORROWING CAPACITY CONSIDERATION Cash Deposit Equity in Other Property Combination of both Above 80% of property value will trigger Mortgage Lenders Insurance. CREDIT HISTORY Credit score is effected by: • Payment history • Number of enquiries • Stable employment history • Stable residential history YOUR CREDIT SCORE 1200 1100 1000 900 800 700 600 500 400 300 200 100 0 -200 STRONG NORMAL POOR