Financing Today – What Has Changed?

Over the past year there have been some dramatic changes to lending policies and products. It is quite difficult and confusing for most consumers to keep up to date with everything that has been going on let alone know which product and lender is best for them.

 

What Has Changed?

 

Other exclusions from genuine savings:

 

 

Remember, this is a guide only and each lender does have its own definition of genuine savings. In most cases you need to hold the funds in a bank account for at least three months. The savings will need to be demonstrated at the time of application. In the past we were also able to show savings if the client had been renting for a period of time. This is not acceptable any longer.

 

Lo Doc/No Doc applications: In the past self employed applicants had an avenue of finance available to them without having to supply proof of income. In some respects this was quite risky as the borrower needed to estimate their income without the benefit of financials or tax returns. It was reported that some clients would over estimate their income to qualify for a loan, and not really have the capacity to repay the debt. The banks and lenders have really cracked down on this and now require BAS statements/and or transaction account statements to confirm the amount of income being declared. The maximum loan amount is 80% of the property value. We have only explained a few of the changes that have taken place. Your Finance Broker is still the best source of information on banks, lenders, policies and products.

What do you think?
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