We understand the financial hardships associated with day to day living in 2016. Both our consultants and our lenders will consider various factors when determining your capacity to service a car loan.
First and foremost, the primary factor we take into consideration is your income. The old business adage “you need more money coming in then going out” applies when determining your financial capacity to service a loan. So a good consistent income will go a long way, however it will need to exceed your current living expenses by at least the proposed finance repayment.
In regards to your personal expenses the financiers will take into consideration the following:
- Rent or mortgage repayments
- Existing loan repayments
- Credit card account limits
- Dependent children
- Marital status
- Living expenses (each financier will have an estimated living cost for singles, married and de-facto relationships)
- Savings balance
- Possible changes to your future circumstances
Each financier will have their own lending guidelines which relate to the above. After determining your monthly expenses we need to weigh this up against your total income.
In regards to your income the financiers will take into consideration the following:
- Your net take home pay (must be supported by payslips)
- Your partner’s net take home pay (may need to be verified with payslips)
- Centrelink income (some financiers take into account a percentage of Centrelink income)
- Investment property rental returns
- Any other income that can be verified (unfortunately cash income cannot be verified, therefore cannot not be taken into consideration as income)
After taking all of the above into consideration, we will calculate your capacity to service a loan. Your total income will need to exceed your expenses by more than the proposed finance figure.
As financiers and introducers alike, we have a duty of care to ensure that you will have the capacity to service your loan. Our consultants are highly trained in sourcing the best possibly finance deal for your particular circumstances. If you want to find out whether you can get approved, fill out your details to the right and one of our expert consultants will be in touch.