It’s NOT Always about Interest Rates.

Although the interest rate on your loan is very important unless you can find a bank who’ll lend you the money, there’s absolutely no point in worrying about interest rates.

Let me Explain.

Imagine you went to your local supermarket to buy some milk.

You’d be able to choose from many different brands, sizes and types of milk. The milk prices would also be highly competitive.

In other words, being able to go and shop at the supermarket provided you with lots of choices.

Now imagine you’re driving in a small country town and needed some milk. You went to the local corner store and all you could buy was full cream milk, in 1 litre bottles at a price higher than a supermarket.

Did you buy the milk?

Most likely “Yes” because you needed the milk and that was you’re only choice.

It’s the same when you want to get a loan.

Where you can shop for loans will depend on your circumstances – I call it your “Money Fingerprint”.

Just like how everyone in the world has a unique fingerprint, everyone also has a unique “Money Fingerprint”.

On the other side of the coin, each bank has their own unique “Loan Rules” which is simply a set of guidelines which they use to assess whether to approve or decline a loan application.

The trick is to find a Bank whose Loan Rules are a match for your Money Fingerprint.

If there are a few banks whose Loan Rules match your Money Fingerprint you can then compare their interest rates as well as other loan features such as their fees and charges (like shopping in a supermarket).

If there’s only one bank whose Loan Rules match your Money Fingerprint, you can choose not to do anything or you can choose to accept the banks interest rate, fees and charges (like shopping in a small country town).

Some of the factors that make up your Money Fingerprint include;

* Do you have any credit blemishes on your credit file?

* What is your annual income?

* Are you single, married or have any dependent children.

* Are you an employee, self employed, casual, part time or on probation?

* What other forms of income do you have? Eg. rent, interest, family allowance

* Are you buying the property in your name only, with a spouse, with an unrelated party or in the name of a company or trust?

* What is your current asset & liability position?

* As a percentage, what is the size of the loan you need compared to the value of the property?

* Can you provide evidence to support your answers?

If you would like to uncover your Money Fingerprint and learn where you can shop for your loan please contact me at 0408 648 107 or email danny@dannycook.com.au