Hello all,
I am sorry if you have had similar posts in the past, but i am very keen to get into property market but unfortunately i have had a credit default against my name in the past and whereever i go i have been told that i cannot get a loan or i will have a slim chance but i will end up having to pay 11-12% interest for 3 years and that is if i even get accepted. I have done the figures over and over again and i can afford it but just cant get loan….anyone know of lenders who might be able to help?? have tried a few and pretty much the same thing….would i have a better chance of borrowing money from NZ banks as i am a NZ citizen also and then investing in NZ?? Any ideas….
Appreciate any constructive feedback..
Tez
Welcome to the forum Tez? What sort of deposit do you have? A 30% deposit, or even 20% should be doable somewhere, but you need to ensure your default is shown up as paid – not unpaid. I must admit, if you have an unpaid default, and want to borrow 90 or 100% of the funds, you will indeed have difficulty, especially in the current economic climate. If you can easily afford the loan repayments, perhaps put them aside as savings for 3 to 6 months, which will increas your deposit, and of course show a savings history, although I am only speculation on your situation/finances without more detail
All the best.You will be able to get finance for sure. But what the rate is the and LVR will depend on how severe your blemish is, how much it was for and when it was, or if, paid. You may even be able to get pretty good rates with a lower LVR.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I agree with the other 2 comments.
The severity of the credit blemish will detemine the LVR and the interest rate.
Something small you should still be able to get 90% LVR at standard rate. I have just done a 95% LVR with 2 paid defaults at standard rates but they were small defaults.
Richard Taylor | Australia's leading private lender
If the defaults were not of your own causing you may be able to have them removed there are a few Solicitor firms that specialise in this, however it does not come cheap
Hi Tez
Another alternative may be to purchase a property with Seller Financing or on a Rent to Own basis. You will usually pay some form of premium (either price of interest rate) to purchase a property this way but, if traditional lenders can't help, have a look in your local newspaper's real estate classifieds, for small ads that have headers like "Rent to Own" or Seller Will Finance, etc. Good luck.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Thanx for the responses….the 2 defaults are both paid.
One is for approx $300 for a phone bill that went missing when moving house (paid 3-4 years ago), the other
is for a credit card for an ex for the amount of $2200.00 that has been paid.(Learnt my lesson the hard way)..
I am hoping to have approx $30-$40K for a deposit including the FHOG of $7K.Have you asked for a copy of your credit report? This is your first step.
I reckon that you will be able to do something if you use a decent broker. I doubt going to NZ will help much as I believe Aus and NZ share credit info now – but I may be wrong??
Cheers,
I think a lot will depend how much deposit you have, as I stated earlier. I'm sure 70-75% would be quite doable, and possibly more. Avoiding a loan or any lender that mortgage insures their loans (up to 80% lvr ie 20% deposit ) should allow you to get finance, without having to pay much more if any than the standard variable rate at the worst.
I'm sure someone will be able to give you more detail if you post more specifics, and if not, suss out a broker that is well spoken of, or one of the banks in your area. Good on you for paying the defaults – some don't – which makes their 'borrowing future' pretty dubious. Cheers.
Those problems do not seem too serious, you may even be able to get it past the mortgage insurers.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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