To ensure you are in the best position to qualify for a loan, please here are our top tips:

1. MAKE SURE YOU ARE ON TOP OF YOUR MONEY
With new Comprehensive Credit reporting (CCR) laws, financial institutions will share more information about your credit history. This will help lenders make a more informed lending decision. It is therefore imperative that you conduct your accounts satisfactory and ensure all current commitments are kept up to date.

2. BE ABLE TO DEMONSTRATE CONSISTENT INCOME
If employed, ensure you can provide your latest 2 payslips and a history of your employment. The Bank would like to see you have a steady and consistent income to repay the loan. If self-employed, make sure your Financial statements and Tax Returns are up to date as a Lender would in most cases need to assess your last 2 years trading results.

3. PROOF OF SAVINGS
While there are loans that may require just a 5% deposit, a 20% deposit is always recommended to have the widest choice of lender options and best rates. A Lender would like to see that you have had the discipline to save funds which will give them added comfort of your ability to service a loan.

4. KEEP ADDITIONAL COMMITMENTS TO A MINIMUM
Lenders apply a higher benchmark rate to all existing commitments in case rates increase. It is recommended that you pay off/reduce any commitments you can and reduce credit card limits before applying for a loan.

5. BE REALISTIC
Interest rates are at the lowest level in 60 years. It is widely expected that the next Reserve Bank move will be up. Therefore we suggest you set realistic expectations of what you can afford and ensure you consider a decent buffer for when rates do go up again. Showing the Bank that you are not trying to borrow to the maximum will make for a smoother application.

If you have any questions or would like to discuss your specific situation, please feel free to contact us at any time.