Enthusiastic about the industry in which he has built a strong local profile, Michael decided to join Mortgage Express in 2012 because it offered a greater opportunity to expand his influence across a larger area. While Michael is the only broker local to the West Tamar, he also heavily services outlying areas and travels to Launceston and beyond to service his clients.
For most of his working life, Michael has worked and excelled in customer service and sales positions, a testament to his ability to communicate and negotiate agreeable solutions for all parties. He always takes the time to explain the complete range of products available to his clients, together with the advantages of each, so they can make a fully educated decision.
Needless to say, he keeps his clients interests at the forefront of his dealings, which has ensured a tremendous degree of repeat business enquiries and referrals over the years.
Michael made his mark on the local financial services industry when he joined LJ Hooker Financial Services, Northern Tasmania, in 2004. Rapidly, Michael began to be awarded prestigious titles, including Top Financial Services Consultant for VIC/TAS for three years in a row. As well as his professional accolades, Michael is profoundly educated, having completed industry qualifications including three MIAA compliance units and a Certificate III in Mortgage Lending from the University of NSW, and a Diploma of Financial Services.
Michael Baldini is a Credit Representative (389880) of BLSSA Pty Ltd ACN 117 651 760 (Australian Credit Licence No 391237)
How Lenders Assess Mortgage Applications
Every lender has its own method and formulae for determining an applicant’s credibility and lender-ability. While the criteria may differ from lender to lender, there are a few factors that all lenders use to profile their clients. Take a look at what these are, and we also share a list of guidelines to ensure your mortgage application is error-free.
Understandably, your ability to meet your monthly or fortnightly mortgage repayments and still have enough left over for your daily expenses is a significant factor for lenders. Banks have a responsibility to ensure prospective borrowers can actually afford their loan, and they can refuse them if they determine that the applicant will be burdened by debt by taking on a loan.
Lenders will usually look at an applicant’s annual, monthly or disposable income to determine borrowing power, and will generally lend about 3 to 5 times an applicant’s gross annual income.
LVR – Loan to Value Ratio
The LVR is used by lenders to assess risk and is defined as a percentage of the loan value against the actual value of the property. An application with a low LVR, which is lower than 80 per cent, is perceived as a much lower risk and is hence seen by lenders as a more attractive application. The higher the LVR, the greater the perceived risk to the bank.
Your credit rating – or FICO score – is an important factor in your application as it represents a summary of your credibility in terms of managing your finances and how responsible you are in paying back your debt. A credit rating is made up of a weighting of various things including your payment history, any outstanding debt, the length of your credit history, any new accounts, and the type of credit you’ve applied for.
Lenders will look closely at your bank statements in order to get a better understanding of your spending and saving habits. The kind of lifestyle you lead and whether or not it fits your budget may be called into question. Your monthly incomings and outgoings are compared, and any debt such as personal loans, credit cards, student loans and insurance is carefully scrutinised.
An error-free application
Securing finance can be tricky which is why it’s so important to ensure you present at first glance the best application you can. That means ensuring your application is free from any errors. Here are a few points to consider:
If you are in the market to buy your first home, it’s worthwhile obtaining pre-approval first. Talk to one of our mortgage brokers who will go over your finances and help you find the right deal.
While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Finservice Pty Ltd (Mortgage Express) for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication. A Disclosure Statement is available on request and free of charge.
Finservice Pty Ltd (Mortgage Express) is authorised as a corporate credit representative (Corporate Credit Representative Number 397386) to engage in credit activities on behalf of BLSSA Pty Ltd (Australian Credit Licence number 391237) ACN 123 600 000 | Full member of MFAA | Member of Credit and Investment Ombudsman (CIO) | Member of Choice Aggregation Services.