Due to the recent Banking Royal Commission, borrowing money is becoming increasingly difficult. It has caused banks to tighten their lending policies which means loans are being assessed more stringently and a critical evaluation of 3 to 6 months of bank statements are being requested, which could ultimately lower your borrowing capacity.
It’s now up to mortgage brokers to prove your financial situation to the banks, with comprehensive evidence of financial responsibility.
When accountants and mortgage brokers collaborate: A holistic approach
Including your accountant in your loan process allows their comprehensive understanding of your financial position (both in business and your personal account) to form an advantage when applying for the loan.
They truly understand your financial capacity and can easily highlight key figures and reconcile payments for your mortgage broker.
Having your business and personal accounts set-up on software such as Xero, is also handy as all financial records are in one place and recorded sufficiently. Your mortgage broker won’t have to search endlessly for small debts or payments, as they can gather required information from the system.
When your mortgage broker reviews your financial records, they are required to look closely at certain expenses or debts, which could hinder your borrowing capacity. When partnering with your accountant, together they can resolve foreseen issues by redistributing funds or advising on what expenses to be reduced.
Choosing the right accountant to your situation is paramount to your financial wellbeing. 542 work hard to develop partnerships and connections, which benefit our clients. We’re proud to work closely with Craig Tracey, who has significantly assisted many 542 clients when applying for a personal loan.
“The key to borrowing these days is to work with an experienced Broker and Accountant who can look into your living expenses and maximise your borrowing capacity” – Craig Tracey
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