At some point in your adult life, you may need to borrow some money, whether that be for a new home, university, or to even start your very own business. Regardless of the basics, it’s important to know how to do this in a responsible manner and that you understand the terms involved. Debt in itself doesn’t have to be a bad thing, especially if you’re using it to achieve your long-term goals. Have you ever heard of financial risk profiling?
This is a fundamental that is used to determine the willingness to take on a risk that will have some sort of effect on an overall decision ergo, borrowing money. Engaging a specialist broker will allow you to understand the interest rates involved, how long you have to pay off the loan, along with the amount you have to repay. All of this should be reiterated to you clearly, and concisely.
How to Borrow Responsibly
Don’t Take the First Offer
The best thing you can do when considering a loan is shopping around and comparing products to ensure you’re getting the very best terms and rates on your loan – at least that are specific to your circumstances and finances. This also gives you time to research and understand anything you may not be familiar with, such as early payment penalties and fixed or unsecured rates and so on. Medipro has access to over 40 lenders and we can do the searches on your behalf for no fee!
Borrow What You Can Repay
The most imperative fundamental of borrowing money is ensuring you’re only borrowing what you can afford to repay. The worst situation you can put yourself in is one where the repayments outweigh your income, leaving you struggling, stressed, and highly strung.Feel free to utilise our calculators on our website or speak to a specialist broker today to see what your position is.
Debt-to-Income Ratio
As mentioned, borrowing only what you can afford to repay is at the top of the list of importance. Loan calculators will allow you to see and understand how much of a repayment you can make based on your income. Your debt-to-income ratio compares your annual profit to your annual debt; the better the ratio of income to debt, the better chances you have of being granted a loan structure. A pro-tip is to make sure you aren’t spreading your income too thin, because this will cause problems not only for your repayments, but it will ring alarm bells when it comes to speaking to brokers and creditors.
Understand Documents & Contracts
When it comes to financial risk profiling, you need to understand all the ins and outs. This includes the documentation that’s involved in the loan process, and any contracts you’re presented with. Before you sign anything, it’s important that you read through things thoroughly, and never leave out the fine print or the terms and conditions. These are the little things may find you stuck. Your Medipro broker is there every step of the way to guide you through these details.
Budget for Repayments
Another one of the most beneficial things you can do is thoroughly budget for your repayments. Budgeting in general is a great skill to learn for being on top of your finances at all times, but when it comes to lending, you should always have an understanding of where you’re at with your repayments and ensure you’re prioritising them over any other luxuries. If you’re already budgeting your income, you’ve got a great foundation for when it comes time to budget your loan repayments. Have a chat with us to see how your current expenses and income can qualify for a loan.
Always Ask Questions
Lastly, never be afraid to ask your broker questions. That is what we’re here for! If there is ever something you are having trouble understanding, even if it’s something miniscule, it’s important to ask a question or ask for it to be reiterated a little simpler. Lending and rates can be confusing for anyone but engaging a specialist broker should come with simplified explanations and definitions of the entire process so that you’re in the know from start to finish.
Speak to MediPro About Financial Risk Profiling Today
MediPro Capital Finance are here to make the lending process simplified for medico professionals across Australia. If you’re interested in financial risk profiling, or want to know more, get in touch with an expert and trusted broker today on 1300 375 626. For general queries and information, reach out online!
Looking for our additional services? We have everything from asset finance for doctors and equipment finance for dentists to medical practice financing and so much more. Browse our website today!