Bad Credit History Home Loans

Bad Credit History Home Loans 

Bad credit home loans are for people with:

• Loan defaults
• Adverse court judgments
• Discharged bankruptcy
• Poor credit history
• Mortgage arrears
• Rental arrears
• art 9 agreements
• Part 10 agreements
• Payment arrangements

Bad credit home loans are also known as:

• Bad credit loans
• Bad credit mortgages
• Bad credit history home loans
• Credit impaired home loans
• Credit impaired mortgages
• Non-conforming home loans
• Non-conforming mortgages
• Specialist loans

Who can get a bad credit home loan?

Bad credit history home loans are typically for people who have had unfortunate events such as a relationship breakup, divorce, lossed their job, had an injury, had a business failure or some other loss of income or assets which has resulted in adverse records on their credit file.

In many cases there is a valid reason why you have bad credit.

Bad credit home loans are generally for borrowers who may have:

• Adverse credit history
• Existing home loan arrears or defaults
• Credit card arrears or defaults
• Personal loan arrears or defaults
• Too many debts and are finding it difficult to consolidate
• Been declined by another lender

Bad credit home loan types

• Home loan with a small paid default
• Home loan with more than one small paid default
• Home loan with moderate paid defaults
• Home loan with large paid defaults
• Home loan with unpaid defaults
• Home loan with judgements or court writs
• Home loan with a part 9 agreement
• Home loan with discharged bankruptcy
• Low Doc Bad Credit Home Loans
• Bad credit consolidation loan

Helpful information for bad credit home loan applicants

Specialist lenders for bad credit

Oak Laurel mortgage brokers know specialist bad credit lenders that are much more flexible than the major banks and many other lenders.

However, the interest rates that are offered reflect the risk to the lender. Therefore, if the lender assesses you as higher risk they will charge you a higher interest rate.

Specialist lenders will assess your bad credit home loan application on a case by case basis and consider your explanation about why you have bad credit and why you need debt relief.

These lenders can often rapidly approve bad credit home loans to meet deadlines from your creditors.

How are bad credit home loans assessed?

Bad credit home loans are assessed on a case by case basis by specialist lenders.

The worse your credit history, the higher the risk the lender will consider you and more limited your options will be and the higher interest rates will be.

Typically, bad credit home loans are priced based on:

How long ago the credit defaults were listed on your credit file / credit report. The more recent the credit problems the worse it looks to the lender.

If you have paid, settled or unpaid defaults/judgments at the time of application. The lender will look more favorably on your application if you have paid rather than unpaid defaults.

The type of the defaults of judgments. Generally phone bills, power bills, water bills, gas bills or other utility related defaults are less severe than bank or financial institution related default listings.

The proportion of the property value (loan to value ratio – LVR) that you are applying to borrow. If the proportion of property value that you are applying to borrow is low it is lower risk for the lender and the interest rate is also typically lower.

Your income situation. Applicants with proof of sufficient income are considered lower risk. If you have stable employment and can provide sufficient evidence (such as pay slips and group certificates) you will be considered as lower risk and receive a lower interest rate all other things being equal. If you are self-employment without the required financials you will be considered higher risk and be charged a higher interest rate all other things being equal.How are bad credit home loans assessed?

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Good investment loans easy to find in Australia

Whoever said that it was hard or expensive to get an investment loan must have been looking for one in all the wrong places. Many lenders are still actively competing for investors as they have not exceeded the Government Banking Regulator’s 10% investment lending growth ‘speed limit’.

Many lenders are still offering loans to investors at higher loan to value ratios and competitive interest rates. The major banks who have exceeded the Government Regulator’s investor growth limit are getting out of investment loans and some are now spruiking that the investment market is dead. It does not even seem to matter that the data says the opposite.   This smacks of If I can’t play I will close my eyes and shout that the property market over. But with so much demand for property in Australia’s two largest cities, Sydney and Melbourne, no one wants to hesitate only to have to pay thousands more for a comparable property next week. Anyone who has attended an Auction in Sydney or Melbourne recently knows that the demand is stronger than ever as are prices.

Here is the tip to getting a good investment loan. Don’t bother going into a bank branch. Don’t bother going to a mortgage broker that is owned by a bank. These places don’t give you a lot of choice even if you are not an investor. Go to an independently owned mortgage broker who has access to a wide range of lenders including non-bank lenders. You will find out that there is plenty on offer for property investors with competitive loan packages to boot. Find more info about what kinds of investment loans are still available here: investment loans

There may be an affordability issue in Sydney but the Melbourne market median house prices are around $200,000 cheaper than Sydney and are just starting to really take off. The most recent property price growth data shows that Melbourne has overtaking Sydney as the fastest price growth city and prices are growing even faster than before. The big banks may be disappointed that they can’t lend to investors in this growing market but this will just give the lesser known lenders a chance to show off their investor loans expand their investor market share. These new Government Regulator measure are levelling the playing field for lenders and introducing more competition that is long overdue.

 

Oak Laurel Mortgage Brokers – Home loans made easy!

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Construction loans: how do home construction loans work

Construction loans

Building your dream home can be an exciting experience. Taking an idea and turning it into reality can be a rewarding experience if done right. When you build your own home you can decide how you want it to be.

It is not always trouble free. Constructing a home can be a long and expensive process and there are many possibilities that things can go wrong.

If you are borrowing money for the construction of the home then the lender is also taking on the risk that something will go wrong. The major risk is what the finish building will be worth. Some of the other risks include the quality of the builder. If the builder does not finish the building it can be very difficult to sell an unfinished home without providing a significant discount on the price. Even if the builder does finish the home, if the quality of the finished home is poor then the value may be less than expected.

Lenders don’t like taking on a lot of risk and will put in measures / requirement to reduce this risk. In the case of lending to build a home some lenders offer home construction loans, with all their strict criteria, specifically for this purpose.

Typically, a qualified and licensed builder must be engaged. Furthermore, the lender will want you to have a fixed price contract (not a cost plus) with the builder so the lender knows exactly how much it will cost to finish the building. Owner builder construction loans are available but generally only for builders who are building their own property. This means that you may have an especially hard time finding an institution to finance your project if you are intending to be an owner builder.

Having a fixed price with a licensed builder is only one of the many requirements of getting a construction loan.

Did you know that some lenders will allow you to use a construction loan for a three or even four units/townhouses development? If you are undertaking a small development contact us to go through your options.

Find out more about construction loans

Find out about the requirements and process of getting and using a construction loan. Everything you need to know.

Construction loans

Oak Laurel Mortgage Brokers – Construction loans made easy!

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What is a Mortgage broker?

“A mortgage broker is an intermediary between the borrower and the banks or lenders. Mortgage brokers usually specialises in home loans and other loans for individuals where as a finance broker specialises in business or commercial loans. A mortgage broker can help you compare the suitability of different mortgages to find a one that is suitable for you. Your broker then negotiates with banks or other lenders on your behalf to arrange your loan and manage the process through to settlement.”

Why use a mortgage broker?

“Your home loan is probably the biggest expense you will ever have. Differences in the rates, fees and features between mortgages can add up to thousands of dollars over the life of the mortgage. A good mortgage broker has access to a wide range of lenders and loans. Therefore, using a mortgage broker can make a big difference to your financial situation.”

What to look for when choosing a mortgage broker

There are some key things that you should consider before choosing a broker:

• Does the broker have access to a wide range of lenders?
• Are they experienced?
• Do they specialise in the type of loans that you are looking for?
• Is your mortgage broker independently owned or owned by a bank?
• Is the broker company a one man band, big brand or boutique brokerage?
• Does the mortgage broker company have a local broker option?

Find out more here: mortgage broker wikipedia

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Property development finance

Australia’s population is growing at a fast pace

With the population of Australia growing and the demand for housing (and other properties) often outstripping supply, the construction of more housing is required to meet Australia’s need.

So what is the solution? It is obvious really, we need more development. We need private individuals or companies/entities to develop or re-develop Australia’s landscape to accommodate our growing population and demand for property.

Making a property development project happen

You may be a smart operator and have identified some real development opportunities but unless you are already super rich you are going to need finance to make your project happen. This can be where some would be developers and even experienced developers come unstuck leaving their potential project as just a dream or worse (potentially much worse) if they committed without securing the finance in advance.

Getting property development finance approved

Getting your property development funding approved does not have to be a problem if the project has real merit. However, banks and other lenders can be extremely risk averse if there are some unresolved problems and end up rejecting your proposal or giving you conditions that you just can’t meet.

So what is the solution? Using an finance broker with experience getting development project finance approved can be a valuable asset to your team of property development professionals (along with your architect, builder, lawyer, project manager etc..).

Want to know more about the factors that impact on funding approvals?

Find out how to get your property development approved.

Do you have a development project that you need to finance?

Contact a property development finance broker.

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COBA concerned about vertical integrated mortgage brokers

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The Customer Owned Banking Association has raised concerns about mortgage brokers in a submission to the parliamentary inquiry

The Customer Owned Banking Association (COBA) has raised concerns about mortgage brokers in a submission to the parliamentary inquiry into home ownership. COBA’s concerns include a misunderstanding of brokers limitations as far as lenders and products offered, obligations of the broker when offering products to the customer and the lack of disclosure regarding vertical integration in the mortgage broking industry.

According to the Mortgage and Finance Association of Australia (MFAA), aggregation/mortgage broker groups that are owned by the big 4 banks, totally or substantially, comprise an estimate of 40% of mortgage brokers. The COBA has strongly and repeatedly opposed vertical integration of mortgage broker groups with banks in the past.

Consumers (You) are right to be concerned about mortgage brokers being owned by the banks and lenders. Many of which have access to only a limited number of lenders and loan products, which may result in customers being directed to their owner’s (Banks) home loan products. Consumers want to visit a mortgage broker so that you can select from a wide range of lenders and loan products. If consumers wanted to go to a Bank and and over pay, then they don’t need to go to a bank owned mortgage broker, just be be fed that bank’s products. Consumers expect that a mortgage broker is owned independently from the bank.

• Oak Laurel mortgage brokers are NOT owned by a big bank or other lender.

• Oak Laurel are mortgage brokers owned independently from the big banks.

• Oak Laurel are family owned mortgage brokers!

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Property price growth soars in Sydney and Melbourne

Thursday, 02 July 2015 | by Nick Bendel

It scarcely seems possible, but Australia’s two largest markets are only getting hotter.

Sydney’s median house price reached $900,000 at the end of June after growing 17.8 per cent over the year, according to new statistics from CoreLogic RP Data.

That compared to a growth rate of 16.4 per cent in May.

Sydney’s median unit price rose 9.5 per cent to $650,000 after rising 8.8 per cent the month before.

Melbourne’s median house price hit $615,000, after growth increased from 9.8 per cent to 11.2 per cent.

The median unit price is now $480,000, although growth slipped from 2.9 per cent to 2.4 per cent.

CoreLogic RP Data head of research Tim Lawless said the February and May interest rate cuts have contributed to these accelerated capital gains, after price growth moderated between April 2014 and January 2015.

“With the RBA cutting the cash rate in February, there was an instant buyer reaction across the Sydney and Melbourne housing markets where auction clearance rates surged back to levels not seen since 2009,” Mr Lawless said.

“Capital gains once again accelerated and we are now seeing Sydney and Melbourne homes selling in record time: Sydney homes are selling in just 26 days and Melbourne homes in 32 days.”

Mr Lawless said strong economic conditions and migration rates have also driven price growth in Australia’s two biggest cities.

Meanwhile, CoreLogic RP Data figures show that Adelaide has replaced Brisbane as Australia’s number three market.

Source & see more: www.rebonline.com.au

Are you thinking to buy property in Sydney or Melbourne? Contact Oak Laurel, who have mortgage brokers in Sydney and mortgage brokers in Melbourne.

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