Paul Deheaume has spent nearly 30 years in the finance industry, both at a bank (think black & yellow) and with Vision. He has spent countless hours helping people with all sorts of different lending needs and always goes the extra mile for anyone he works for. With so many changes in the lending landscape, we thought it would be a good time for him to tell you the best ways to obtain a smooth loan approval.
The last 12-18 months have seen big changes in the lending world
- APRA has put limits on investment and interest only lending
- Banks have raised rates and tightened their lending rules
- The Royal Commission will put more pressure on banks to lend more responsibly
- Brokers are being asked to get more information from you
- Loan Assessors are delaying approval (or declining) more loans that don’t exactly fit their criteria
At the end of all of this is YOU, the client! Believe it or not, banks still want your business and with careful planning, there are ways for a smooth loan application approval.
Paul's 5 commandments for a smooth loan approval
1. Thorough Fact Find
When filling out Fact Find forms, be thorough and remember to include all your savings accounts and credit cards, no matter how little you use them. If these are excluded, it leads to us or the banks needing to reclarify things with you.
Click here to see our current Fact Find form.
2. Monthly Living Expenses
Banks are asking for more detailed break-ups of your monthly living expenses. Click here to see what we are asking for. It would be best if you had a good understanding of both your ‘current’ expenses (after your loan settles) and what you could bring it down to if you needed. We also have a really good Budgeting Tool for you to use on our website.
3. Manage Existing Credit Limits
Some of us occasionally pop over our credit card limits or are a day or two late in making a minimum loan repayment. This is likely to delay a deal if it has occurred recently prior to lodging a loan application. If it can be avoided, that is good, but if it HAS occurred, we need to get full explanations prior to lodgement.
4. Check your credit history
If you have a negative item on your credit file, it can be a factor in preventing a smooth approval, and we may need to assess other lending options. It is good for you to know where you stand! Contact us if you feel this would benefit you.
5. Understand your existing loans
Banks need to know more about your existing loans. Apart from seeing loan statements which shows how much you owe and the conduct, they will need to know how much is available in redraw and in offset, the remaining loan term, the rate and the current repayments. All of this should be on your internet portal and is part of our Fact Find request.
Vision can help you with each of these 5 commandments; it is part of our job!
We want to do everything within our power to ensure your experience is warm, welcoming and FAST!
Click here to read more about the Royal Commission and it's potential impacts on the Finance industry