Press releases
Right advice important in challenging times
05/08/2009
Dealing with banks and other financial institutions has never been anyone’s idea of a good time, hence the reason why the services of mortgage advisers and brokers have been increasingly sought after in recent years.
It is estimated that about 40% of home loans in Australia are now arranged through a mortgage adviser.
While mortgage advisers have always provided a valuable service, in the face of the current economic environment, their services and expertise are essential for any property investor serious about securing the right finance to fund their investment property purchase
The policies of all lenders have changed considerably in recent months as they look to minimise the risks to their business with an increasing focus on ‘quality’ borrowers.
These changes include:
- The abolition of 100% and 100%+ home loans – most lenders aren’t looking to lend anymore than 90%, with some lending up to 95% for the ‘right’ borrowers.
- The abolition of no-doc loans and tightening criteria for low-doc – this can mean reduced access to funds for investors and the self-employed.
- Closer scrutiny of a borrower’s credit history – even the smallest default can jeopardise an application as banks choose to deal with only reliable borrowers.
- Closer scrutiny of a borrower’s ability to service the loan – length of tenure with your employer and consistent business earnings if self-employed are now more important than ever.
- Better deals for existing customers – there may be greater flexibility for customers who already do business with a lender, even if you only have something as simple as a credit card or transaction account.
These changes certainly don’t mean that securing the right loan for your needs is an insurmountable task, but it is certainly a lot more challenging and time-consuming to wade through the loans, rates and lenders on offer.
At these times, the advice and guidance of an experienced mortgage adviser can be invaluable.
As always, talk to your Smartline Personal Mortgage Adviser for more information.
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