Banks constantly review their mortgage credit policy to ensure they apply responsible lending practices in assessing a customer’s ability to service existing and proposed debts. In the current COVID-19 climate, lenders require even more documentation to support finance applications. These include :-

  • Are you aware of any changes to your broader situation that may impact your earning capacity?
  • Are there any changes in your current employment circumstances or income levels that may impact ability to meet any existing debts or expenses ?

Finance brokers and mortgage brokers try to investigate fully the borrower’s needs and their financial analysis to ensure that borrowers not only meet their current and proposed financial commitments but that the proposed loans are NOT unsuitable for the borrower.

It is important to note that whilst lenders are offering attractive interest rates, it still comes down to the lenders’ credit assessment. Too often, we see applicants are enticed by lower interest rates get disappointed if the application does not meet the lender’s credit criteria.