The last of the four ‘C’s is character. This is the general background information about the potential borrower.

For example, the length of time they have been living at their current address; how long they have been employed in their current position and whether they are self-employed.

Obviously, the more stable the borrower’s employment history, the more confidence a potential lender has in their income levels and, accordingly, their ability to service the loan.




  • What are the four ‘C’s’ a lender will consider when assessing a loan application?
  • Provide a one-sentence explanation for each.




Paul and Helen wish to buy a high-rise apartment as an investment. The price will be $400,000. The apartment is one in a block of 100 in the city. To finance this property Paul and Helen need to borrow the full purchase price of the apartment. They have a home in a suburb of Melbourne worth $380,000 with a mortgage of $300,000.

  • What would the LVR be of the two properties combined?