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ISCOVER
Staff Reporter
Tighter lending conditions and incoming legislation are forcing brokers to spend more time preparing loan applications.
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Smartline’s managing director Chris Acret said brokers were being forced to turn over every stone and sometimes gather hundreds of pages of supporting documentation to secure loans for clients.
“There are a range of factors that can see a loan application being refused, but the trend seems to indicate that the more information and supporting documentation you can provide, the better the chance of having an application approved,” Mr Acret said.
“It is certainly a lot more challenging and time-consuming – especially for those who are not familiar with lenders’ conditions and requirements – but it doesn’t mean that obtaining a loan is an insurmountable task.”
According to Mr Acret, it has never been more important for a broker to fill out every single section of the application form.
While employment details and stability used to be the keys to a successful loan application – including employment history, having minimal unsecured debt, strong ability to service a loan, a clear savings history and a deposit – Mr Acret said lenders now want to see evidence that applicants have a “reliable character”.
