Understanding Your Finances: How a Broker Helps You Find the Right Lending Solution

Since becoming a Finance Broker, I have seen a gap in the market for understanding finances, understanding what lenders ask for when applying for any sort of lending, as well as just not knowing what to do or what options are available. Not every lender will ask for the same information. Most lenders all have different borrowing limits, and it can vary from the income they will accept, interest rates they charge, fees they charge, how much they allow for living expenses (HEM) and what type of job you have. Some lenders will use a different percentage on business income, overtime, commissions, family tax benefits and more. 

The amazing part of being a finance broker is not only do i help people with buying property, vehicles, and so much more is I don't charge my clients! I get to help give direction as well as assist with achieving their goals. How I get paid? the lender, after your application is settled, will pay me. With access to over 85 lenders there is rarely an application I can't have a solution for. A common question I'm asked "what is my borrowing capacity just for me"  

I suggest having a conversation with a finance broker, to be the first step in the whole process, understanding your lending options, borrowing capacity. What you need for the application and putting together the below information to make this all come together. This also helps with understanding what is in your price point when looking at property and putting together options. What I would ask for;

 1. Gather Your Financial Documents. The first step is getting a full, accurate picture of your financial situation.

Key documents to collect:

-Bank statements (both joint and individual accounts)

-Credit card statements

-Home loan/mortgage documents

-HECS/HELP debt information

-Personal loan and car finance contracts

-Superannuation statements (important for settlement)

-Payslips and income summaries

-Tax returns and ATO assessments (at least the last 2–3 years)

-Business financials if self-employed or running a company

-Insurance policies (life, health, car, home)

-Property documents (titles, valuations, purchase contracts)

2. Understand What Assets you have and there Value. As well as Liabilities. 

Assets that may be shared:

-The family home (even if it’s in one person’s name)

-Investment properties

-Superannuation balances

-Savings and investments

-Cars and major purchases

-Businesses or family trusts

-Cryptocurrency and shares

Debts that may also be shared:

-Mortgages

-Personal loans

-Vehicle Loans

-Credit cards

-Joint tax debts

-Individual contributions still matter

-Company Liabilities. 

3. Track Your Current Cost of Living. Understanding your everyday expenses helps you prepare for life on your own. This creates a realistic post-separation budget.

Include:

-Rent or mortgage payments

-Energy, water, and internet bills

-Groceries

-Transport or car costs

-Private health insurance

-Childcare, school fees, and kids' activities

-Subscriptions

-Medical and personal expenses

4. Plan for Future Needs. Thinking ahead for the financial changes that come with building a separate life. Set Goals for this new chapter.

You may want to Consider:

-Moving and relocation costs

-New rental bond or property purchase costs

-Setting up utilities and accounts

-Legal fees

-Mediation or counselling fees (especially if children are involved)

-Emergency savings

-Centrelink payments you may now be eligible for (e.g., Family Tax Benefit, Parenting Payment)

5. Begin Separating Your Finances Safely. It's important to untangle your finances thoughtfully and fairly, especially if things are still being negotiated.

Steps may include:

-Opening your own individual bank account

-Updating passwords and online banking access

-Talking to your bank about freezing joint accounts if needed

-Removing authorised users from credit cards

-Discussing interim arrangements for bills, mortgage payments, or childcare costs

-Setting clear agreements on who pays what during the transition

-Document every agreement or change, even informal ones.

6. Protect Your Credit Score. Your credit rating influences your ability to rent, buy a home, or take out loans. Shared debts can impact you if they’re unpaid or mismanaged. Which can cause a large amount of issues and best to protect yourself as it does affect the interest rates you could be charged, loan structure, could limit lenders your able to use, additional fees.

Protect yourself by:

-Checking your credit report (free annually)

-Making sure joint bills continue to be paid

-Transferring, refinancing, or closing joint debts where possible. I always suggest to reduce and close debts if possible.

-Not taking on new joint debt during separation

A good credit history gives you more financial independence.

7. Seek Professional Advice When Needed. Australian family law can be complex, and what applies to one couple may not apply to another. These professionals can help you avoid costly or irreversible mistakes. As well as giving peace of mind during this chapter, as it can be extremely overwhelming.

A Family Lawyer – to understand your rights and settlement options.

A Finance Broker- to give you a guide on borrowing capacity and lending options. 

A Financial Adviser – for budgeting, superannuation splitting, or long-term planning.

A Mediator – for resolving property and parenting arrangements without going to court.

A Tax Agent or Accountant – as tax outcomes can change after separation.

While separation can feel overwhelming, getting organised financially is one of the strongest steps you can take toward rebuilding your independence. With clear documentation, understanding your money, building a solid plan, you’ll be better equipped to navigate this transition with confidence.  

When we are applying for an application, as a broker having an understanding of your asset, liabilities, and income is important. The lender really wants to see "more money coming in than going out"

Something I work with my clients on to see if the loan they are wanting is achievable is start saving the repayment amount and if they feel comfortable with doing this or is there financial hard. We do this for a minimum of 8-12 weeks to get a true guide on how achievable this loan can be. This also helps with understanding your money, what are your non negotables in your life style, and at time a reset on what you value with your money. 

If you would ever like to discuss any lending options, my website is www.pklendingco.com.au you are able to make an appointment on the website, free of charge, we can discussion all things lending, what is a good rate for your application. From a business loan, vehicle loan, Mortgages and just talk about future borrowing ability or Just call to discuss any questions you may have.