5 easy tips to increase your chances of a yes!

Tuesday 19 November, 2019

We keep hearing the same message from the marketplace – lenders are saying “No” more and more frequently. Credit is getting harder and harder to get. Customers are no longer given good service, instead, they are interrogated as if they are applying for a job with the lender – instead of a loan!

Recent sentiment discussed by many key people in the finance industry indicate that the rate of declines are growing quicker than applications.

In a time where our Government is trying to stimulate the economy by setting the cash rate to a record low and reducing assessment rates to make it easier for borrowers to access more credit than previously possible… It’s a little odd that many people are actually finding it more difficult to borrow than ever before!

Fortunately, Finance Brokers Tasmania are here to help. Not only are we Tasmania’s most experienced brokerage firm but we truly believe that by educating our clients we can do our bit to help our community! Accordingly, we are pleased to present five easy tips that you can implement in order to boost your likelihood of a yes!

Pay all liabilities early or on time

Lenders are often asking to see statements for liabilities – even if you aren’t refinancing! This means that if you have been charged a $10 dollar “late fee” because you forgot to transfer the money on time; your application may be declined. A great way to make sure you keep up to date is to set yourself a reminder on your phone or arrange a direct debit with the lender.

Keep your accounts topped up

We’ve all forgotten about that pesky subscription (or gym membership) coming out a day before your pay clears, right?! Many lenders are now asking for transaction account statements as evidence of a customer’s ability to manage their regular expenses – and if your account is frequently overdrawn (in the red) then it’s possible that this is where your application will end.

Reduce your unsecured liabilities

We certainly don’t presume that we have the right to tell our clients how to live, but if you are planning on applying for finance it might be worthwhile stopping and thinking about closing down as many unused credit cards/store accounts/afterpay/zip pay accounts that you can. Even if you aren’t using them, and don’t own a cent on them – these liabilities will reduce how much you can borrow. That’s a fact!

Cash'n'play instead of tap'n'pay

It’s surprising how easy it is to dismiss what that night out actually costs if you are just tap-tap-tappin’ away. Next time you head out try leaving your card at home and taking cash instead! Not only will this limit your spending, but it will also alleviate any awkward questions that you may encounter if you have to show a lender your transaction records.

C_ll y__r br_k_r

Do you need to buy a vowel? You know what to do if you really want a 'yes' to add to your success! Call you broker.

You might also like...

Finance Brokers Tasmania selling a house Hobart

Preparing for Interest Rate Hikes!

When you consider a ‘hike’, what is the first thing that springs to mind? A walk through the bush or a sharp rise? The RBA lifted the official cash rate by 25 points to .35 percent last week – the first rise in 11 years. While we understand that a rate rise is never a good thing, interest rates are still at historic lows and we wonder if the use of the word ‘hike’ is a necessary one!

Read more...
Finance Brokers Tasmania Lance Cure Gary Casboult

What is a SMSF?

Self-managed super funds (SMSF) are a different way of saving for retirement. A SMSF gives flexibility and control over where your retirement funds are invested, including the opportunity to invest in residential and commercial property.

Read more...
Finance Brokers Tasmania - fixed interest rates

Government Grants - A budget Update 2022/23

If you missed the 2022-23 budget announcements this week, you may have missed the incentives announced for home buyers. While most are not new, the government have increased the number of spaces available for eligible home buyers through their Home Guarantee Scheme.

Read more...
FBT Hobart Bec and Dini

Do you need pre-approval?

We are often asked if you need pre-approval before looking for your dream home. Pre-approval is not essential but it is one way to ensure you don't miss out!

Read more...