Financing

Do you require finance?

When it comes to shopping around for the best loan to suit your particular circumstances, it always pays to get a second opinion.

How much can you borrow?

Your borrowing capacity – that is, the amount you are likely to be able to borrow based on your circumstances and income - will vary between lenders. Why? Because lenders have different methods of assessing borrowing capacity and different general lending policies.

Although the methods of assessing borrowing capacity differ between lenders, most lenders will look at the same basic criteria which includes:

• Existing income,
• Anticipated rental income (in the case of an investment purchase),
• Outstanding financial commitments,
• General living expenses, and
• Existing asset position, including the size of your deposit.

They may also look at any property currently or previously owned, the type of property you are looking at (eg house, apartment etc.), and the type of loan you are applying for.

How do I maximise my borrowing capacity?

While the criteria lenders base your borrowing capacity on may look pretty much set in stone, there are a few things you can do prior to applying for a loan that may help increase your limit.

• Pay off outstanding term debts (eg. personal loans).
• Pay off and close any credit card, overdraft or line of credit facilities to reduce potential debt.
• Consider reducing the credit limits on any facilities you need to keep open.
• Set a budget and stick to it – this can help increase your deposit and also displays your money skills to your lender.

The Loan Market

Whether you are looking to buy your first home, your next investment or refinance your existing debt, The Loan Market can assist you with the process.  The services of The Loan Market are available to you completely free of charge.

With access to over 30 lenders and in excess of 300 products, our role is to find you the most suitable form of finance and, where possible, even save you money in the process.

For further information about The Loan Market, please contact Terry Christo on 0416 179 169 or by email at terry.christo@loanmarket.com.

If you would like to estimate your borrowing power and access other information, please visit www.loanmarket.com but remember to email your enquiries to terry.christo@loanmarket.com.