The online mortgage broker

A Credit Policy is a set of guidelines / lending criteria that lenders abide by when providing a loan product. It is put in place by them to manage their risks and to comply with legislations. This is usually framed by the 5 C’s of credit.

The first one is Conditions (economic conditions) so it does not form part of our application process.

The remaining 4 C’s of credit that we work with are:

Character – stability of residence and employment, unresolved legal issues, savings history, credit history/credit rating;

Capacity – ability to repay the new loan based on verified income, debt and expenses;

Capital – net worth (total assets minus total liabilities) which demonstrates ability to manage financial affairs; and

Collateral – the value of, and risk associated with the value of the asset which the credit provider can take ownership of and sell to pay the debt if the borrower defaults and cannot make the agreed loan repayments.

Add a Comment

Helen is Head of Content at uno - the smarter, faster way to get a better home loan.

FAQs Glossary

You might also be interested in

uno Offers Customers Bank-Level Security Backed by a $1 million Insurance Policy

Your information is protected by bank-level security covered by an industry-first insurance policy.

Key Fact Sheet (KFS)

A document authored and published by a lender in a set format to inform borrowers about a the features of a loan. The product KFS is usually available via the lender website.


The guarantor is legally responsible for paying back the entire loan if the borrower cannot or will not make the repayments. The guarantor will also have to pay any fees, charges and interest.


Get started

The new way to get a Better Deal!

Get started