Helen Collier-Kogtevs

How Lenders Evaluate You

June 27, 2019

Lenders will evaluate you in terms of your potential risk. In reviewing your application they want to know, “What is the level of risk involved that you will not pay back your loan?”

A range of factors can impact how a lender views you in terms of risk, including:

Credit File: It goes without saying that a clean record of repaying your debts is going to boost your financial CV, while a spotty credit history is not going to do you any favors.
Employment History: A long and loyal employment record helps to demonstrate your stability and responsibility and reassures your lender that you have the capacity to pay back the loan in the long-term.
Accommodation Stability: A long time living at one address can help your application, as it represents reliability and your ties to the community. On the contrary, a flighty record of many accommodation changes can work against you as it can indicate a tendency to make frivolous and impulsive decisions.
Current Outstanding Debts: Once you reach a certain level of borrowing, many lenders become nervous about extending further lending your way, even if you have the income to service additional debt.

And don’t discount bad spending habits like Uber Eats and Sportsbet, which lenders also see as high risk.

The bottom line: hitting the financial brick wall can cripple the ambitious investor’s efforts to get ahead, as it halts you in your tracks in your attempt to acquire more property assets.

After all, how can you look at buying another house if you can’t secure finance to settle the purchase?

To make things even more complicated…

Each Lenders Uses Different Policies and Criteria to Evaluate Risk on Their Own Terms

The good news is that it is possible to continue borrowing even if you feel like you have hit a financial brick wall.

Better still, you don’t have to go down the path of low doc loans (and their associated lower LVRs and higher interest rates) to do so.

In fact, I reveal exactly what those strategies are in my ‘Red Book’ which breaks down the key steps to salvaging a sinking property portfolio.

And for a limited time, you can pick it up here for a 67% discount.

Helen Collier-Kogtevs

Helen Collier-Kogtevs is the Founder of Real Wealth Australia, a leading education and mentoring company for real estate investors. Not only is Helen a highly successful property investor and an educator, but Helen is a best-selling author and a philanthropist. Helen is also the CEO and Co-Founder of eLINK Finance, an award winning brokerage committed to educating and supporting investors with getting the finance they need to build property portfolios. Helen is particularly passionate about helping people, especially people who are keen to create wealth and make a difference in their lives. She founded Real Wealth Australia to mentor investors to create wealth and financial freedom by focusing on helping them build an investment strategy to fit their individual goals, rather than focusing on one particular investing method using her successful property investing system.