Category Archives: Home Loans

Documents You Need When Buying a Home

Making the decision to buy an apartment or townhouse in NSW is a big step. However, it is easy to get excited and forget about your rights. This, in turn, depends on the contract for sale plus a number of equally important documents. So here is a list of the most common documents that you will need when buying your dream home.  

1. Contract for Sale

First and foremost, you will need the contract for sale. This document will identify the property in full detail. It will also state the terms on which the property is being sold. In other words, you will find the price, when to pay the deposit, and the time and date of settlement. Bear in mind that residential properties in NSW cannot be bought without submitting a signed contract for sale.  

2. Copy...

Tips for Financing Your Home

According to recent statistics, it is now more expensive to afford housing than ever before. This just does not mean being able to buy your own house or apartment; it also refers to renting housing as well. If you are looking for a place to live but are not sure if you can afford it, it can be quite troublesome. Thankfully, there are lots of ways that you can afford the home of your dreams, even if you are just planning on renting it. This article consists of tips that you can use to make sure that you will be able to make all of your payments. Here is what you should do:

Check Your Score

One of the most important things that you need to do is make sure that you have a good credit score. The...

What is meant by “Bad Credit OK”?

We have all see the adds from non-conforming lenders promising to help you where others have failed. They are not put off by bad credit or lack of financials. Does this mean that a person who has been refused everywhere can qualfy? Probably not. Who are bad credit lenders? Bad Credit Lenders are lenders who specialise in offering loans to borrowers who fall outside the traditional lender criteria. Traditional lenders like the banks will not consider borrowers with a blemished credit history. The key word in this sentence is "history".  Borrowers are often confused into thinking that Bad Credit Ok means a borrower with current unpaid bad credit can be assisted by a bad credit lender. Generally this is not true. Bad credit history may not be an issue, but your bad credit must be in the...

Want to improve your chances of mortgage approval?

It can be difficult finding a lender prepared to give you a go once you have had some instance of bad credit - especially where your bad credit is still unpaid. We regularly hear from consumers looking for strategies to turn their luck around when it comes to home loan approval. While time is your friend when it comes to fixing a bad credit history, some people are not willing to wait until their bad credit clears up. Here are some potential solutions to getting your bad credit mortgage approval over the line: Repay the bad credit first Even bad credit lenders want to see that you are in a good place financilly at the time of your loan application. Borrowers who can not afford to repay old debts are generally seen as not being able to afford new...

How much deposit is required for a home loan?

Recent media reports suggest that one of the greatest difficulties experienced by first home buyers in trying to break into property ownership is saving up a sufficient daving a home deposit has never been easy. Given the high property prices and high costs of living it can be even more challenging today. Low deposit home loans are available through many lenders. These are home loans that borrowers can gain access to with only 5% deposit. If your first purchase is priced at $350,000 - the minimum deposit with a low deposit mortgage would have to be at least $17,500. When I hear home buyers complaining of how difficult this is to achieve, I think back to 30 years ago when I bought my first property for just over $60,000. I needed to come up with a deposit...

What is your credit score?

Credit score is a fairly new concept to Ausralians. Many of us are aware that as consumers we have a credit file which maintains details of our credit activity. This is where any evidence of a credit default, a judgement or a bankruptcy would be recorded and would affect your ability to qualify for finance. However we were never used to having a single number - a credit score, sum up our credit worthiness. It used to be that you had to be careful not only about makig loan  payments on time but also about excessive applications for credit as these were able to adversely affect your credit rating despite all payments being in order. Since we have moved to comprehensive credit reporting earlier this year, there appears to be more use and awareness of...

Mortgage refinance after bad credit

Anyone who has had their mortgage for some time and applied for it initially when they had an unblemished credit history, will have a difficult time making a mortgage refinance stack up. That is finding a mortgage that will not be more expensive than one that is in place today. The main problem being that clean credit mortgages are significantly cheaper than those available to credit impaired borrowers. Unless you have a significant debt problem outside of your mortgage, refinancing from a mainstream lender to a bad credit lender is unlikely to offer financial benefits.  ( lifedeal )There are however a couple of circumstances where such a refinance may make financial sense. While you do need to make sure that any unpaid credit showing up on your credit report is paid out before considering a mortgage...

Dealing with bad credit fallout

Bad credit can have significant impact on the opportunities available to you both in the workforce as well as in finance and housing. That is not to say that all is lost if you have some credit history roblems. There are strategies that you could employ to address the impact of bad credit in your day to day life. Qualifying for finance Bad credit will put you outside of the lending criteria of all mainstream lenders. That does not mean that no one will lend you, but it does mean that your loan may be smaller than you expected, for a shorter period of time and most likely more expensive than the prevalent cost of bank finance. With finance applications you may try to gain loan approval by offering the lender the security of an income guarantor or...

Is lending to help a family member a good idea?

This question tends to come up regularly. Siblings or parents come to the rescue of their family member when they hit financial difficulties or unable to borrow. While at face value this is a very noble thing to do, after all who else would help if not you, financial assistance can backfire if not handled correctly. Treat all assistance as a 'gift' The best advise that we can offer is do not expect to recieve your money back - if you do then this is a bonus. Unfortunately all too often a helping hand in time of need sometimes turns to a long family feud when borrowed moneys are not repaid. Therefore you treat your assistance as a gift and only lend what you can affod to lose, there will be less chance of a long term...

Bad credit mortgages – what you should know!

While it is possible to qualify for a mortgage with bad credit, the availability and viability of such mortgage does depend on the personal circusmtaces of the borrowers, including available income, available/deposit or equity and nature an dstatus of the bad credit. Many borrowers believe that once they have been discharged from a debt agreement or have repaid their bad credit, it is behind them and they should be able to qualify for traditional finance. This is of-course not true. What constitutes bad credit Bad credit does not have to be unpaid bad credit. It can be a discharged bankruptcy or a debt agreement. Bad credit can also mean a borrower who is under a payment arrangement for some debts or a borrower who is consistently paying their loan or credit cards late. If you are a...