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How to keep your loan application on track

Looking for loan application tips?

For the best possible chance of getting the loan that suits your circumstances, you need to tick all the boxes. If an application is not completed correctly, you risk delays in approval, or even being declined by potential lenders.

Other than the obvious documentation that needs to accompany an application, satisfactory identification and evidence of income by way of pay slips, many lenders will expect to see contact details from your employer (to obtain a reference), group certificates or tax returns, and documentation regarding any investments or shares that you might have.

If you are self-employed, you will need to organise alternative documentation to prove income, such as financial statements relating to the profit and loss of your business going back two years. Mainstream lenders will only look at self-employed borrowers with an ABN that is greater than two years old but there are alternatives.

Lenders will also want to see bank statements going back a few months in order to track your spending and savings history. Most importantly, you will need to provide the details of your debts.

You must include documents that outline HECS debt, personal loans, credit card liability and any expenses relating to dependants. Liabilities and in particular, living expenses are being heavily scrutinised by lenders and if you don’t disclose this information, your loan will very likely be declined.

In order for a lender to assess your capacity to service loan repayments, every financial detail must be taken into account.

Lenders want to see proof that you are capable of managing the responsibility of the loan, through steady employment, a good credit history and a debt-free approach to your financials. But do not fear if there is a small black mark on your credit record (eg a mobile bill that was missed because you changed bank accounts). As long as it can be explained many lenders are very reasonable and are willing to take this into account when assessing your application.

By having all of your documents organised and a saving and repayment plan documented, as well as evidence that you can commit to the plan, you will increase your chances of receiving the loan you are after, even if your credit history is blemished.

Any questions? Let us help you. Call Chris today on 0490 075 039 or send an email to

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