Hi everyone. Did some Googling for someone to shoot a question to and this site seems like the most likely candidate!
In 2001 i left to work in Canada and lived there until mid 2007. I am an Australian citizen and since my return to Australia have worked full-time with the one employer, in the same industry that i did OS.
Since my return to Australia i have made no applications for credit. I have had credit here in the past, a couple of credit cards, mobile phones and a car loan etc and have had no defaults, but since these applications were made more than 5 years ago i'm led to believe that these will no longer appear on my CRAA or whatever it is called these days!
In the next 6-12 months i'm looking at a loan for a PPOR (if i have the terminology right!), i am assuming mainstream lenders will be reluctant to lend to someone with no checkable credit history but i don't want to pay inflated interest rates when i have a steady job, reasonably substantial non real estate assets and no defaults.
What would be everyones opinion about how i proceed over the coming months to ensure the best chance of approval from a lender with a decent rate? Should i make one or two applications for a small amount of credit such as a credit card or maybe a small personal loan? Just so i can get some recent credit history behind me? I've had conflicting information from a number of brokers i have contacted, one said i'd have no trouble even with no credit history, the other said i'd be wasting my time even thinking about applying and the other basically didn't want anything to do with me because he knew he wasn't going to get an immediate commission!
Thanks in advance for any help!
James
Hi James
Welcome back to Oz and especially the forum here.
I think you might have spent too long in the North American market as from the information you shouldnt have too much problem at all obtaining standard financing through a traditional mainstream lender.
In saying that of course the Big 5 all have their little pecularities in what they will and wont accept especially if the loan is mortgage insured.
Certainly dont apply for small loans that you dont need as unlike the USA we dont work on a FICO score in Oz so the fact that small amount of credit have been approved can actually go against you rather than in your favour.
When the time comes just present your mortgage broker with the documentation and he will know exactly where to place it and hopefully how to structure it.
If you have any questions feel to ask away.
Richard Taylor | Australia's leading private lender
Your mortgage broker should write extra notes with the application to the lender that explains your situation and employment prospects. For example that you worked in industry xyz for x years in Canada and have recently moved to Australia and have gained work with the same industry as you are a qualified {whatever you are}.
Agree
You shall have no problems obtaining a home loan. Your history is easily explainable.
The only instance I can imagine it having impact is in relation to personal loans where some lenders may record this as a negative in their credit scoring system. Again quite easily explainable.
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