I heard about this from a website. BAsically the lender does not require extensive documentation for loan approvals, but the borrower pays a higher interest rate.
Anyone have any idea if this sort of financing is common and how much higher the interest rates might be compared to regular financing?
Thanks
It is very common today.
Rates are not really much more than normal lending nowadays.
I suggest, if you are considering this, you speak to a broker and see if it is what you really need.
Cheers,
Simon Macks
Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
As Simon mentioned often the rates of interest can be less than standard as you tend to have more equity and considered by some a lesser risk.
Cheers Richard
richard at castlewhite.com.au
Email me for details of our Qld wrap CD which gives you a full Installment Contract.Richard Taylor | Australia's leading private lender
The low doc market is the fastest growing and rates just keep coming down. A few of the lenders will give you exactly the same rate as a fully documented loan but with other restrictions like lower maximum loan amounts and lower LVRs. At 80% LVR or leas, they are as cheap as standard loans. Higher LVRs see rates loaded by 0.5% and up… I have seen some in double figures so be careful you don’t take the wrong one.
TMA
http://www.email4money.info
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