When you apply for a loan, a credit assessor looks at five key criteria –
1. Character – things like stability of employment, how long you’ve lived somewhere and your credit history.
2. Capital – Your deposit and savings history. The larger the deposit the lower the risk.
3. Capacity – Your type of income or employment, and how easily can you service (i.e. pay back) the loan.
4. Collateral – is there a property or asset the lender can repossess if you can’t pay the loan?
5. Conditions – What sort of loan do you want? A specific purpose, such as a home may be more preferable to a lender than a loan for an unspecified purpose.
Ready to purchase your next home, or thinking of refinancing? Get in touch today.