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Many people are unable to obtain a loan as a result of credit tightening policies implemented by lenders.

Many people are unable to obtain a loan as a result of credit tightening policies implemented by lenders.

One Sydney-based Business Development Manager and former mortgage broker Hank Hong, says that one in three clients are unable to obtain a loan as a result of credit tightening policies implemented by lenders.

“It’s [credit tightening] affected servicing and how much you can actually lend based on incomes,” Mr Hong said. “Certain offers that they put into place, higher living expenses, certain buffer rates, have reduced what [clients] can borrow.

The BDM added that borrowers, who have previously obtained unsuitable loans, are now struggling to manage their mortgage repayments.

“Existing clients are coming back because they’re not being able to service the loans that they were initially approved for because of the tightening of the service calculations,” the broker continued.

“Going back two years ago, people were getting million-dollar loans — $1 million to $1.5 million — with just $80,000 incomes or combined incomes of $150,000.

“They were on fixed rates of 3.99 per cent on interest-only loans, which they could afford, but when these fixed rates come off and the interest-only comes off, those clients are going to struggle to make the P&I repayments.

When looking for a loan you need guidance from a professional that you can trust. We are one of the most experienced finance brokers in Australia and has the knowledge and expertise to offer their clients the right financial advice.

As a member of the Mortgage and Finance Association of Australia – the MFAA – we meet their strict accreditation standards for education, experience and ethics.

When you deal with Illawarra Home Loans and their sister company PCL Money you get the benefit of their thirty years of experience in the finance industry to help you with what are often very important major decisions in life.

With IHL you can be confident that you are working with a company that has the integrity to help you source the most appropriate loan for you business and personal circumstances.

As an MFAA member we must adhere to a code of practice that demands the highest standards – ethical behaviour, fair practices and compliance with relevant laws and regulations.

Contact our friendly team to discuss your financial requirements in the strictest confidence. They will can save you time because there are a lot of choices available on the finance market today.

With IHL you are working with a professional team that already has extensive knowledge of the borrowing options available.

We can offer you more choices compared to a bank or building society and when you compare their rates you will often find that PCL Money offers a more competitive interest rate than the banks.

This is because IHL has a panel of lenders from whom to source loans and are not locked in with any one single institution.

We can help you avoid the lending pitfalls where a loan offer at face value looks great but can include penalties, fees and charges that are not obvious.

Talk to us and get answers that you can understand to questions like: ‘How much should I borrow and should I have a fixed rate, variable rate or a split rate?’

We will give you straightforward advice on how to increase your borrowing capacity and how to pay off your mortgage sooner.

Find out what you need to know about debt consolidation and how to improve the cash flow of your business.

Contact us today and deal with one of Australia’s longest established Finance Brokers where you can sure that you will get the right advice to help you avoid taking out a loan that you may later regret.

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