How do I qualify for a loan

How do I qualify for a home loan?

While lending is a fast pace, rapidly changing world with new policies and products released constantly the basics remain the same, lenders are looking for character, capacity and collateral.


Your lender is looking for a good credit history, in Australia we are moving from a “negative reporting” regime, where you are reported for negative behavior only – to a regime where positive repayment history is also reported, and negative behavior in far greater detail. What does this mean? Where previously you would only be reported for a missed payment of 60 days or more, lenders are becoming able to report a payment which is paid just a few days late. (So move everything to direct debit!) They are also able to report positive behavior which is good news if you need a fresh start.

Lenders are also looking for a stable employment and home address history, and a list of assets which is both greater than your current liabilities, and is reasonable for a person of your age and with your income.


Quite simply, can you afford the proposed loan? In this we are looking at your income and liabilities & other commitments, but also your savings history. If it looks like you have no spare income at the end of the month then can you really afford a new commitment? Perhaps you are willing to make sacrifices for a goal - I can’t tell you how many times I hear “we’ve been living life, enjoying ourselves, but now it’s time to get serious”. If this is your light bulb moment I applaud you for taking action.


The security offered for any loan should be easily sale-able for the lender if you’re unable to make your repayments, sorry, that’s a harsh reality but it’s fact. For this reason the lenders may not love that unique home that you have fallen in love with. There are not many properties which are completely unsuitable for security, more likely they may suit one lender more than another, or the compromise is to borrow less as a percentage of its value so the lender has more comfort.

To make yourself more suitable for a loan, get rid of any unnecessary commitments, stay put in your job and your home – ideally 3 years is considered stable, show an ability to save and no, please don’t suggest that the rock and roll themed former lighthouse is a great investment

full article in Western Weekender:

Featured Posts
Recent Posts
Search By Tags
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square

Call us today on 02 9002 0380

  • Facebook Social Icon
  • Instagram Social Icon
  • Twitter Social Icon
  • YouTube Social  Icon

Two Red Shoes Copyright © 2020 All rights reserved. Call on 02 9002 0380, 0404 494 929, email us  or 'old school' fax 02 9002 0381

Jarrett Group Pty Ltd atf Jarrett Group Discretionary Trust trading as Two Red Shoes hold Australian Credit Licence No: 428614 and are members of an external dispute resolution scheme. Details of our complaint resolution process can be found here or please see our credit guide. All information contained on this site is general information only, and does not take into account your particular financial situation or needs. You should consider your personal objectives, financial situation along with the recommendations of your trusted advisors.

Sydney mortgage broker operating in

  • The Hills District

  • Hawkesbury

  • Nepean 

  • North Shore

  • Penrith


  • Camden

  • Baulkham Hills

  • Lower Blue Mountains

  • Parramatta

  • Hornsby


  • Windsor and Richmond

  • Rouse Hill

  • Hunters Hill

  • Gladesville

  • NSW Central Coast too!