Everyone knows that different lenders have different interest rates, and loan packages. But did you know that your borrowing capacity also varies between lenders? While one bank might lend you one amount, another will lend you much less. Why is this, and how can it affect you?
Borrowing capacity – why does it vary between lenders?
The short is that lenders have different policies. Each lender assesses income and expenses differently. Unfortunately, it’s never as simple as how much you get paid, minus how much you spend.
This is especially true if you have a more complex loan. For example, if you own several properties, most lenders will add buffers to your expense. This means that while you may only spend a certain amount on expenses, a lender may assess your expenses as being quite a bit higher.
Lenders also assess your income differently. How much of your income counts, can vary dramatically. Lenders also have different rules about what income sources count.
How does this affect me?
Variation in borrowing capacity can make it hard for people to know how much they can borrow. It also makes it hard to know which lender to go to.
Often, people have a prefered lender. Unfortunately, their prefered lender may not be willing to lend them the amount they need.
Even worse, people often won’t find out a lender won’t give them enough, until they apply, and are declined. This can be quite a disaster. The application leaves a mark on their credit file, and if it happens a few times, other lenders flat out decline them.
How do I avoid these problems?
Luckily, there is an easy solution. You can avoid these problems by finding out what your borrowing capacity is, before you apply. As lender rules are complicated, and constantly changing, this isn’t something most people are about to do.
Fortunately, that’s what brokers are for! At Bee Finance Savvy, we stay up to date on lender policies, and how these policies affect our customers. We also have lender calculators that allow us to assess our clients’ borrowing
capacity, without lodging an application.
This is a risk free, obligation free process. All you need to do, is get in touch with us for a chat to get the ball rolling. Our up front assessment won’t mark your credit file, and you’ll walk away with a clear understanding of how much you can actually borrow!
To find out more, call or text our wonderful broker Desiree on 0455 131 937 or 1300 140 554. Desiree can also be reached at firstname.lastname@example.org . You can also fill out the contact us form on this site.
If you’d like to hear from just some of our satisfied customers, take a look at our reviews on WOMO https://www.wordofmouth.com.au/reviews/bee-finance-savvy-miranda
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