Over the last 12 months we have had a lot of tightening in lending in alot of areas. This resulted in Australians having their borrowing capacity being reduced. Most Australians that are in a position to refinance their debts go to their banks only to be told that they can’t afford to service their existing loans.

We expect to see different lenders having different assesment rates. These assesment rates would be based on their risk appetites and their risk levels. However the assesment rates on average would be closer to the current interest rate levels. This would help with increasing borrowinf capacities.

A lot of people are still struggling to realise that their expenditure over the last 3 to 6 months is really hurting them. This is beacause banks are reviewing these expenses with a fine tooth comb for loan applications. Banks are taking the average of your expenses from the last 3 to 6 month period to estimate your overall living expenses. However, you may have made some one off larger expenses during this time. This is then being included into your average living expenses overall. This could include buying new furniture or even a holiday.

To find out more about how lenders look at your loan applications watch the video above. Once you know how lenders view your application you can then come up with stategies on how to get a better result from your lender. For more videos like this, check out Rise High TV. If you have any questions, get into contract with us here.