Non Conforming Loans Podcast

If you’re self-employed or a small business owner, it can be tricky to provide the traditional home loan proof of income requirements.  That’s where low doc home loans can be helpful. If you’re a company director, sole trader or in a partnership with a registered ABN and looking to apply for a home loan, a low doc home loan could be a game-changer if you’re struggling with your home loan application. If you’re applying for a home loan, lenders want to know that you can repay that loan. They do this by assessing your proof of income. For employees who receive a salary, it’s easy - all you have to do is give them your payslips and other financial statements. But if you’re self-employed or running your own business, it may be difficult to provide all the traditional documents you need to prove your income. This doesn’t mean you don’t qualify to apply for a home loan, you just won’t be able to apply in the traditional sense. So, instead, you can apply for a low doc home loan also known as an Alt Doc Home Loan.When applying for a low doc home loan, some of the documentation you’ll need to provide include a Self Certification of your income plus one of the following:   ·       6 months of lodged BAS Statements from ATO portal ·       6 months  of Business Account Statements,  ·       Accountants Letter to Verify your income The accountant’s letter needs to confirm the following: 1.    Your full legal name, your company or business trading name and your ABN2.    How long your accountant has been servicing you  3.    Your gross taxable income or confirmation that you can afford the loan   Because of the lack of documentation with low doc home loans, there is a higher risk to lenders. So, their low doc home loan products generally have higher interest rates and set up fees and require a larger deposit (generally 20%). So that’s something to consider. Does this mean that you will be stuck with paying a high interest rate for the life of the loan? Not necessarily, our loans are a vehicle to get you into a home. Once your meet the lending criteria of a Prime Lender you will be able to refinance to a more competitive rate.  If you’re unsure if you have enough documentation to apply for a standard home loan, check with your mortgage broker to get the right advice for your situation. A mortgage broker can also help you find a lender and product most suitable to your personal circumstances. if you have any questions about low doc home loans - we’d be happy to help at www.NonConformingLoans.com.au

With lenders tightening their lending criteria, you may find it difficult to obtain a Prime Bank home loan if your circumstances are out-of-the-ordinary.  Luckily, though, there are some non conforming alternatives for home loan applicants who are not able to meet this stricter lending criteria.  There are some other options you could consider before giving up on the purchase altogether. One of those options are a near prime home loans or a specialist home loan. Non Conforming Loans offer alternative lending options to potential borrowers if they don’t meet the standard lending criteria.  You’ll typically not meet the criteria if you’re self-employed and don’t qualify for a bank loan or have a poor credit history. Even if you’ve previously been declared bankrupt, you could apply for a Non Conforming Loan. Non-conforming loan applicants aren’t necessarily just those with a poor credit history.   If you’ve just moved to Australia and lenders can’t verify your credit history, you could apply for a non-conforming loan. You can also apply if you’re short term employed, on probation or a casual worker. You may have been declined for a low credit score or too many enquiries on your credit file as many lenders have a minimum credit score of between 650 > 700. You may require CASH out to pay a tax bill or you may not have genuine savings for your deposit. These loans work similarly to standard home loans. However, the main difference being the fee structure and the higher interest rate due to the risk of financing a non-conforming applicant. Does this mean that you will be stuck with paying a high interest rate for the life of the loan? Not necessarily, our loans are a vehicle to get you into a home. Once your meet the lending criteria of a Prime Lender you will be able to refinance to a more competitive rate.  Before making any commitments, it’s worth speaking to a mortgage broker first.  An experienced mortgage broker can also help you find a lender and product most suitable to your personal circumstances. if you have any questions about Non Conforming Loans - we’d be happy to help at www.NonConformingLoans.com.au

Can you get a home loan with bad credit? Are you being rejected by the banks due to black marks on your credit file? Here's what you can do to get your home loan approved.  When you apply for a home loan, lenders will always check your credit file. Your credit report is basically a history of your financial activity. It's one of the main factors in determining whether the banks will even consider your home loan.  This is not good news if you have bad credit. But all is not lost. Non Conforming Loans can consider many situations that the banks won't. This is great news for people who have been through unfortunate events such as a divorce, loss of job, injury, business failure or more. So what is considered to be 'bad credit'? Well, it means things like missed repayments on your debts, previous bankruptcy or a Part IX agreement, adverse listings on your credit file such as defaults, judgements or court writs, unpaid bills or taxes, or just having too many enquiries on your credit file.  Non Conforming Loans have more flexible lending policies than the major banks and they will assess your application on its merits. Remember though, the interest rate will reflect the risk of your loan. Your interest rate will vary depending on the size of your deposit and the nature of your credit history. You will be able to borrow up to 95% of the purchase price in high population areas on a bad credit home loan.Does this mean that you will be stuck with paying a high interest rate for the life of the loan? Not necessarily, our loans are a vehicle to get you into a home. Once your credit file becomes clear, you will be able to refinance to a more competitive rate.  If you’re unsure if you have bad credit check with your mortgage broker to run a credit report and get the right advice for your situation. A mortgage broker can also help you find a lender and product most suitable to your personal circumstances. if you have any questions about bad credit home loans - we’d be happy to help at www.NonConformingLoans.com.au

Consolidating debts into your home loan can be a powerful tool for managing your finances and achieving greater financial stability. Owning a home is a significant milestone in one’s life, and it comes with numerous financial benefits. One such advantage is the ability to tap into your home’s equity to consolidate high interest debt. In this podcast, we’ll explore what debt consolidation with a mortgage entails, its benefits, and important considerations. If you are juggling multiple debts, a debt consolidation loan could make it easier for you to manage your repayments. Here’s how.If you’re feeling like you can’t keep up with all your debt repayments and just NEED to find a way to make it easier, a debt consolidation loan could help you do that. A debt consolidation loan combines some or all of your existing debts, such as credit cards, personal loans, car loans and other high interest loan products, into your  home loan. The idea behind debt consolidation is to make it easier to manage your repayments.An added benefit is, if you take out a loan with a lower interest rate than what you’re currently paying on your existing debts, you could actually reduce your overall debt and save on monthly fees.Another benefit of having all your debts consolidated into a home  loan is that term loans are repaid over a fixed term, so you have a clear timeline for when you can be debt-free.But, if the personal loan is more expensive than your existing debts, you could accumulate more debt through interest and fees. So, it’s super important to compare the interest rate and fees of any new loan you’re considering against your current debts. To avoid making the wrong decision, it may be helpful to chat with a mortgage broker - especially if there is late repayments or arears.As a go-between for borrowers and lenders, mortgage brokers can play a useful role in accessing more loan options for you. This way, you can compare interest rates and see if a debt consolidation loan would be in your favour or not. You’ll also need to watch out for the term of your loan. The longer the term, the lower your regular repayments would be, but the more you would pay in total. So, If you’re looking into debt consolidation loans as a solution, we would highly recommend getting some professional advice from one of our lending specialists at Non Conforming Loans. 

Non Conforming Loans is known for their “out of the box” loan options and they specialize in loans that meet the needs of individuals who have been declined by traditional lenders and/or who might need a loan for reasons that don’t meet the strict criteria of most banks.There are many reasons why certain borrowers will not meet the lending requirements set out by traditional lenders:• Bad credit home loans  – these borrowers have generally experienced a “life event” such as a marriage breakdown, illness or a business failure and are considered high risk by most lenders even if they have overcome the event that caused the bad credit.• Low Doc Home loans – borrowers with irregular income, such as Contractors, applicants on Probation, Short Term Employed or Self Employed without lodged Tax Returns, may not fit the criteria of mainstream lenders.• Debt Consolidation Home Loans – these borrowers may require cash out to pay tax debt or consolidate multiple unsecured loans such as credit cards, personal or car loans or business debts and can be rejected by prime lenders.• Near Prime Home Loans – Most Banks and Mortgage Insurers have adopted statistics-based credit assessment models that do not offer the flexibility specialist lenders can provide.• Discharged Bankruptcy Home Loans – Most Banks and Mortgage Insurers will not lend to Ex Bankrupts where we will lend to 95% LVR.• Expat Home Loans – Australian Citizens working and living overseas can borrow to 80% LVR.• Non Resident Home Loans – Non Residents or Non Citizens or Temporary Visa holders can borrow up to 80% LVR• Commercial Property Loans – You can borrow up to 80% LVR on Commercial Property in Australia• Private Lenders – We have private lenders for commercial purposes Those interested in any of these types of loans can begin the application process directly on the website. For those who are unsure about applying for a loan or who aren’t completely comfortable beginning the application process online the website offers full contact information so that potential borrowers can call to speak with a loan specialist.