Let me ask you this… What do You Compare When You Compare Personal Loans?

Hmm… well the rate of interest, something more like Banks and loan amount.
That’s the reply most of us may say if someone ask about things to compare before applying for Personal Loans in Australia.

You might be interested to borrow some money to fund your big dream purchase, to start a business, long-overdue home repairs, to plan a long-awaited vacation abroad or to make up for the wedding expenses. Whatsoever be the reason, you would resort to the banks and lending agencies in Australia to help you with a personal loan.

Personal loans are quite different from other forms of money on credit, such as credit cards and mortgages. Thus, it is imperative to make the right selection after comparing ifs and buts related to the borrowing.

Things to Compare When You Compare Personal Loans Australia

The Type
Obviously, the best choice will greatly depend on your current financial health and past history.
There are most basic type of personal loans that incurs monthly interest and is paid off by regular repayments over a stated period of time.
If you are in need of immediate availability of emergency cash for the meantime, you may consider either a credit line or a personal overdraft instead.

The Tenure
Your personal loan tenure in which you will be making your monthly repayments is crucial. Consider it as the strict payment schedule to abide. Missing few ones and going off the track would turn up for costly consequences. Always select the loan term for your repayments as per your financial priorities & evaluation.

The Rate
Another important thing to look while comparing personal loans is the interest rate offered by the lender. Check out interest charges and other fees from multiple lenders to compare your savings and affordability.

The Borrowing Limit
Ideally, your borrowing power is often based on your income, credit history and repayment capacity. Other factors that may help to increase your borrowing limit includes adding a co-applicant, providing collateral security, etc.

The Repayment Figure
This amount is calculated along with the principal, total interest amount and total fees for the loan. Work on an amount for your repayment by considering your income and expenses in first place.

Here’s how to get a Home Loan in Australia

Applying for your first home loan is a little uneasy and often time consuming. If you know what the lenders will look for in your loan application, you can take some hassles out of the process and make it convenient.

The Five C’s of Credit
To assess your capability to repay home loans in Australia, lenders use the five C’s of credit -

• Credibility 
• Credit History
• Capital for Deposit
• Capacity to Pay Back
• Collateral as a Security

The Five Tips to get that Approval

1. Submit only the Authentic and Verifiable Information - The paperwork is important, thus, get all the letters and statements that shows your income, savings, and all the different sources of earnings or anything that is specifically required by the lender you wish to apply.  
2. Check your Credit History - Ensure that your credit standing is all good and if you aren’t sure then ask your mortgage broker to get a copy of your credit report. Flags or black marks on it may prevent from getting the final approval on your loan application. 
3. Improve or Fix Your Credit Ratings - Being a first time homebuyer, it is important that you have a clean credit history before you apply for a loan. If your credit ratings are compromised then seek help from a professional credit repair expert who can help you in fixing the issues as well as to improve the score. 
4. No Extravagant Purchases and No Frequent Job Changes -Take control of your buying habit before you buy a home. Making expensive purchases will hinder the borrowing power. Also, do not frequently change jobs within 6 to 8 months of applying for a home loan. 
5. Seek Pre-approval and then Start your Property Search - Instead of selecting a property that exceeds the amount you can borrow, the wiser option is to first seek a pre-approval on the amount and the home loan interest rates Australia and then search for a home to buy as per the affordability.