4 Tips to Improve the Quality of Your Loan Application

When you are looking to refinance your current loan over to a new bank, it’s important to remember these few things to improve the quality of your application and increase the chance of the new banks saying YES!

Tip 1 – Ensure your current repayments are on time.

The new lender will often ask to see 6 months of statements for your current home loan and they may check your credit report for your repayment history.

It is important to make sure your current repayments are consistently on time. If the new bank sees missed payments, late payments, or late fees on the statement, they can consider this a higher risk and may charge you a higher interest rate.

Tip 2 – One application at a time.

Each time you apply to refinance your loan, it will be recorded on your credit file. It can be a red flag to your new bank if you have submitted multiple inquiries to many different banks in a short period of time.

Tip 3 – Avoid starting a new job at the same time you are trying to refinance.

Your new bank will look at your employment history. Most banks prefer that you are not on probation and many banks will require a minimum of 3 months of recent payslips to confirm your income.

Tip 4 – Use a Mortgage Broker to do the research for you!

As your mortgage broker, we can research loan offers from a wide range of different banks and lenders, and then make a recommendation to you based on our individual needs. We put together your application along with a strong story explaining your circumstances, after all being a great mortgage broker is not just about the numbers, it’s important to tell the bank a story of why you are a brilliant applicant and why they should approve your application. We can take out the guesswork and increase your chances of a loan approval.

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