By: Jessica Darnbrough
Australia’s banks are imposing hurdles on borrowers that prevent them from getting a loan, according to Aussie.
The non-bank financial services group’s chief executive officer Stephen Porges said money sourced from global credit markets is now priced considerably higher than it was a few years ago, which means banks can and are being selective as to who they lend to.
“In effect, they’re cherry-picking potential customers with the best capacity to repay debt and are imposing hurdles on the others,” he said.
Mr Porges said unfortunately, the majority of borrowers are unaware of these hurdles – which vary from bank to bank, and as a result their applications are rejected through no real fault of their own.
“Being rejected for a loan could adversely affect their credit rating, and in turn this could also affect them the next time they go to a financial institution to borrow money.”
Mr Porges said he is advising all Australians that are considering purchasing a home to use a mortgage broker to help them obtain finance.
If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.
A greater proportion of brokers are sending their clients to non-...
The major bank’s data has revealed a jump in asset finance grow...
The weekly round-up of the biggest news stories from across Momen...