What lenders look for when you apply for a loan

Getting a loan isn’t just about your credit score and this episode explains why. Eddie and Carlo break down how lenders assess loan applications, borrowing capacity, and risk. Credit scores matter, but they’re only one part of a bigger picture. They explore why borrowing power varies between lenders, how investment property portfolios are assessed, what changes for self-employed borrowers, and why interest-only loans don’t always increase borrowing capacity. They also cover living expenses, debt-to-income ratios, missed repayments, and key lending trends for 2026. Hit follow, leave a review, and share this episode with someone trying to understand their borrowing options. ⏱️ Timestamps: 00:00 Intro 02:24 Why borrowing capacity varies between lenders 05:14 What lenders look at with investment property portfolios 08:09 Why banks use higher assessment repayments 10:32 What can make a loan application fail? 14:15 Lending options for self-employed borrowers 18:03 Interest-only vs principal and interest loans 20:48 How important is your credit score? ------- Follow us for more: Eddie:   / eddiemalaeb   Carlo:   / carlo.link.wealth   Link Wealth Finance: https://www.linkwealthfinance.com.au/ Want to chat with an expert mortgage broker? FREE 30-minute Clarity Call: https://outlook.office.com/book/Eddie... About The Broker's Lounge 🏘️ Welcome to The Broker's Lounge with Eddie & Carlo - the podcast where we make the world of mortgages and finance feel a whole lot less intimidating. If you're here, chances are you're thinking about buying a home, maybe your first, or maybe you've been down this road before. Either way, you're in the right place. Disclaimer: The information contained within this podcast is general in nature and does not take into account your personal circumstances. Please reach out if you wish to discuss your personal situation.