Credit Problems

Reading the headlines you’d think that the property prices could drop off a cliff anytime soon. This is after the same newspapers screamed out that the market was booming. That property price increases priced first home buyers out of the market.

Articles often supported by some statistics to support the theory that the “market” is dropping. It’s enough to make anyone think it’s wise to stay out of the market or even to sell out of it.

The evidence is that the market is softening. This is caused by multipile factors including a credit squeeze making it more difficult for people to access the credit they need for property or business purposes. One of the biggest issues putting pressure on house prices is the banks have changed their approval policies after being slammed at the Hayne Royal Commission.

This means the your current lender may not be the best people to go to for a refinance or new purchase. It is important to not only look at rate when determining a suitable loan product. Look also at the credit policy of individual lender’s. There is little point going to the trouble of applying for funding with a lender that has changed policy. It may preclude your approval in your current circumstances.

Its more important than ever to research the lenders and loan products available. We are not just experiencing pricing pressure in this current property cycle, we are experiencing a credit problem. Normally in a downwards phase of the property cycle we see confidence levels drop creating pressure on property prices. We now face a quite unique situation of people confident enough to purchase a property or invest in business but are then confronted with a credit problem as they encounter the new policies.

In this cycles, as in others, there will be opportunities as well as challenges. Opportunities for those that do their research.

Check out our website which lets you compare potential lender’s using our robot assistant. Order a free property report which will show you an estimated price of property and suburb.




First Home buyers

To travel the world or buy a home? Or both?

It’s a question asked by many people in their 20’s. There’s a preconceived idea that once you’ve committed to a mortgage you’ve set yourself up for a mundane and restricted life, deprived of the joys …

Read More →
Home Loans

Can you lose more at the Casino than your money?

Casinos are notorious for their bright lights, cooled air conditioned environment and of course, their cunning ability to deprive you of your hard earned money. But in today’s society the negative ramifications of a gambling …

Read More →
Lending Policy

The lending environment

Recent developments in the property and finance market have impacted on property values and finance approvals. APRA (The Australian Prudential Regulation Authority) was established in July 1998 and since then it has attempted to supervise …

Read More →
Smart Finance

How Your Bank Statements Affect your loan application

Your bank statements could have more more influence than you realise on your loan application. A potential lender can use your bank statements to give a snapshot of all your spending and income. Better than …

Read More →

Fast Business Loans. $5,000 to $250,000

Need funds for an opportunity or to support cash flow? We can help. Get fast, easy access to a small business loan of $5K to $250K, with funding possible in 24 hours.

Read More →
Alt Doc

Alt Doc Home Loans

Self employed applicants need not struggle obtaining a home loan. Business owners also have finance options to suit their circumstances. Many lender’s require up to date accounts to prove income and if you’ve been busy …

Read More →
Scroll to Top