RESIDENTIAL

Now that we are in Spring, lenders are heavily marketing their various home loan products to gain market share.
Borrowers should be mindful that it’s not about the lowest interest rate, BUT rather, that you meet the lender’s credit criteria.
There continues to be a rise in Alt Doc (self-declared) residential lending. A number of non-mainstream financial institutions are providing residential finance for clients who are self-employed. Use of Business Activity Statements and Self-Declared income is becoming widely acceptable.

Some other key differences by non-mainstream lenders include :

  • Increased Age Limit (up to 90 years old) for borrowers, with a clear exit strategy AND SUBJECT TO LENDERS ASSESSMENT.
  • 40-year home loans are available (with lender’s serviceability criteria enabling the applicants to obtain finance).
  • 40-year Investment loans (with an Interest-Only period up to 10 years).
  • Some non-banks are NOT Credit Scoring loan applications. THIS IS A POSITIVE. Most lenders utilise your Credit Score, and if your Credit Score does not meet the lenders criteria, the loan is automatically declined.
  • Lenders expansion of utilisation of various income streams. Examples include 100% overtime, bonuses, shift allowances, government benefits, bonuses etc.
  • Expat finance available (with a common sense approach to each transaction).
  • Bridging Finance – a loan product that suits your requirement when purchasing and selling your home with the lender providing a fast turnaround time. Provides a solution for the best outcome and flexibility for a variety of customer types.
  • Debt consolidation (including ATO debts, private mortgage refinances, personal debts and any other worthwhile purpose).

 

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