What are the 5 C's of credit?

When applying for a mortgage, it’s crucial to understand what potential lenders look for. They utilise a framework known as ‘The 5 C’s’, which provides a holistic view of your financial health and borrowing potential.

  1. Character - is your financial behaviour and history. Lenders’ scrutinise your credit file, employment stability, savings discipline and payment history.
  2. Capacity - this is your ability to repay the loan without financial distress. Lenders will examine your income, expenses, and existing debts.
  3. Capital - your assets and liabilities, and how much you’ve saved for a deposit. Demonstrating you have savings, assets and minimal debt will help.
  4. Collateral - the property you intend to purchase. Lenders assess the property’s value and condition as security against the loan. Choose good quality areas and properties in good condition.
  5. Conditions - the loan’s purpose and broader economic or personal factors that might impact your application.

Boost your chances of home loan approval when you understand the 5 C's.

Since 1996, DPN has helped thousands of Australians build wealth through property

DPN is a multi-award winning, professionally certified enterprise providing independent, research-based property investment strategy plus access to high yield, multi-rental house & land packages.

Here's a selection of recent success stories from clients who are now successful property investors.

THREE WAYS WE CAN HELP YOU BUILD WEALTH

Schedule your discovery call now to learn more

DPN is offering a complimentary 20 minute discovery call with one of our friendly team members to review your current situation and outline the simple steps to obtaining your own tailored property investment plan.

Submit

Thank you

Your call has been successfully booked. One of our experts will be in touch with you soon.
Oops! Something went wrong while submitting the form.