Lender Credit Policies

Lenders have a specific credit policy they use to assess and approve loan applications.

A lender’s credit policy is a document that outlines the requirements and procedures for approving a loan and normally considers the following factors:

Borrower criteria Residency status Guarantors

Savings requirements – both genuine and non-genuine Employment and income

Expenses and liabilities Property and security Loan to valuation ratio

Lenders mortgage insurance Maximum loan amounts

Loan purpose; and Interest-only loans

Every lender has a different credit policy and the different documents a lender will ask for is set out in the lender’s credit policy. If your situation falls outside of the lender’s policy, it is likely that the application may be declined.

A lender’s approval or denial decision and the criteria they base their decision upon may vary significantly from one lender to another, which explains why a loan application may be approved by some lenders but not others.

As your mortgage broker is accredited with a range of lenders, they are required to have knowledge of lender credit policies. Having this knowledge and access to a range of lenders gives your mortgage broker the ability to ensure they provide you with the outcome that meets your requirements and objectives.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

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