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Do lending amounts vary between banks?

Every bank is different

One of the common questions we're asked is whether lending amounts vary between banks, and the answer is a resounding "yes". 

We'll run through a few of the reasons behind these variations and why having access to a range of lending options can be a game-changer.

Lending policy similarities and differences

While not all the same, lending policies among different banks can share some similarities.

They all have methods for calculating various factors, including your expenses. Over the past few years, with the evolution of the CCCFA (Credit Contract Consumer Finance Act), banks have introduced different loan servicing calculations and concepts like "uncommitted monthly income," which reflects the money left over after your expenses are paid and your income lands in your account.

However, the difference is often in how each bank treats specific expenses. For instance, some lenders may have a different approach to factors such as property rates, insurance costs, childcare expenses, or other financial commitments.

Another key variance can be in types of income, whether this is business, PAYE, commission, bonuses, self-employed, or from government benefits.

All banks treat income slightly differently and often this impacts the amount they're willing to lend to you.

Let's look at an example here.

Recently, I had a situation where one bank's lending offer was $200,000 less than that of another bank, which made a huge difference for my client as they were comfortably able to service the lending and could purchase a property more suited to their family's needs.

Options and advice matters

The key takeaway here is that lending amounts can vary a lot from bank to bank and it's crucial to secure the right fit for your specific situation.

Whether you're looking to borrow more money, secure better terms, lower interest rates, or receive cashback offers, having someone who understands the intricacies of these lending policies can make all the difference.

Even if your financial situation appears straightforward, there may still be opportunities to secure a better lending deal than what you currently have. It's about finding the best match for your situation.

We can help

In the ever-evolving landscape of lending policies, knowing where to turn can be a challenge sometimes!

That's where we come in. We've been out there doing it for a number of years and have the expertise to navigate the complexities of lending policies, pinpoint the gray areas, and help you achieve your financial goals.

Whether you're considering a property purchase, refinancing, or simply looking for better lending terms, we're here to guide you, so get a call booked in with Greg, Claire, Adam or Amber today.


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