- We're purchasing two units on one title in Ringwood East that are a little old but have heaps of potential.After we were knocked back by a very slow and indecisive major bank (starting with W), we turned to a 70% nodoc loan from "The Vision Home Loan Company". The rate is 7.65% which seems reasonable. They appear to get the money from a company called "First Mortgage Company Home Loans PL". We've received our formal approval and things seem to be moving quote smoothly now towards settlement. However, I know next-to-nothing about lender and very little seems to be available on the WWW.Does anyone have an experience with these people? Should I be worried about possible restrictions or limitations in future? Settlement is not until October so there's a little bit of time up our sleeves if we need to change lenders again.
Make sure you read your contract very well. Ensure you are well aware of any penalties imposed by the lender if you should pay out the loan at any stage,
The rate is reasonable but check the fees.
Cheers,
As Simon mentioned due a few checks before you jump in.
The interest rate is not everything especially when you are talking about a mortgage insured loan.
Do you have to go Nodoc – are you sure ?Remember to make sure you tell about the 2 units on one title as the mortgage insurers are very funny about that at the moment.
If in doubt get a second opinion. If insured do you may the LMI or does the lender etc etc etc.
Richard Taylor | Australia's leading private lender
It really doesnt matter where you get the money from, the lender is taking all the risk. They are happy for you to use the money for this purpose on the promise that you will pay them back, because they know if you don't they can sell your property. I would recommend that you take the Letter of Offer to your solicitor and pay them to go over it with a fine tooth comb and advise you of any concerns they may have, before you sign. If they are happy, go for it.
hugob
Got to be honest wouldnt be my attitude at all. I would checking out the small print before you get to Letter of offer stage as most securitised lenders charge application fees and certainly valuation fees.
Why would you put yourself through that only to read something you could have found out at the start of the process.
Richard Taylor | Australia's leading private lender
Congrats on the pending property purchase. The main things you will need to be mindful of is that there will be a reasonably hefty early repayment fee if you plan on selling the property in the first couple of years. I am not familiar with this company, but the rate is very reasonable for a loan of this type and most lenders charge fees, for application / valuations etc. Obviosuly when lenders like this offer loans more flexible and with less hassle than the so called 'big 4 banks' at better rates, there is considerable set up, and the loans need to go for a few years in order for it to be 'worth their while' as they say. All lenders, banks or otherwise charge fees, and the small print in most loan docs is enough to make your blood curdle! After this period, you will likely have a discharge fee, maybe $250 (one of the banks has a $750 discharge fee regardless, so that is nothing to get too excited about either) .
Don't let scare mongers put you off if you are 'home and hosed', and happy with the offer. Remember, As mentioned though, I have not heard of this company either, but obviously you found out about them somewhere?
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