Credit Crunch

World economic events during the last six months, in particular, the decline of share prices, has sparked enormous interest and concern for individuals and governments.

Indeed, meetings between heads of government and resulting resolutions on economic strategies is unprecedented amongst leading economies. Implementation of those strategies will impact positively on our economies in both perception and in practical ways. But, what impact is it making on ordinary Australians and their finances now?

Our contacts in the finance industry tell us that lending for full documentation loans has not changed a great deal. If you meet the criteria for a "full doc" loan then loan approvals should not be a problem.

Where problems do arise is "low doc" loan applications. Lending criteria for low doc loans has made approvals much harder with some financial institutions either removing these loans from their product range or adding a premium of 1% or more to the interest rate.

Shopping around for the right loan for your circumstance is now more important then ever. Consider these options:

  • Variable or fixed rate?;

  • Introductory and honeymoon loans - common with first home buyers;

  • Interest only - common with investors;

  • Full doc or low doc?

If you want to know how much you can borrow, our supportive team has the GENUINE expertise, accreditation and experience to assist you with both home loans, car and business finance requirements.

Call Peter Earle today on (07) 3208 3888 or complete the above online enquiry form - we're ready to listen and give you the best possible advice on true rates, loan structure and service.

By David Maynard
CEO My Tax Zone

Copyright 2014. My Tax Zone.