I am new to this forum and feeling desperate for some financial advice.
I am on to my 7th application for a loan of $300k having been rejected by 3 banks and 3 credit unions. I have had private finance approved but at a rate of 10.75%.
Does anyone have any ideas of where I might get finance at less than 10.75%?
Please help!
I know Linar has answered this post in the other Forum and i agree with his comments.
With 6 previous Credit entries on your file now i think the chance of obtaining a loan other than thru Private FInance is slim.
I can think of one lender who may have considered it from day 1 but they certainly wouldnt now as they are not a lender of last resort.
You dont mention how much you want to borrow or what the funds are for?
With Gross income of $4200 less any living expenses etc i think you are not going to be able to show much in the way of serviceability.
Richard Taylor | Australia's leading private lender
As I said on the other post, I failed to mention that I only want a loan of $300k.
Hi and welcome to the forum
Unfortunately for yourself but lending conditions have changed. I actually think banks are becoming more responsible in lending. Yes you only want $300K on a property you believe is worth $3 million. The bank is not only focused on the value of your asset but also the your abilitiy to repay. As a large percentage of your income is rental you must remember that banks wont take the full value of rental income as they factor in various expenses and periods of vacancy. Banks will also calculate your ability to repay at a higher percentage rate then the current rate, this ensures you can meet your obligations if rates increase in the future. Banks come under alot of pressure when they lend to people who cant afford to repay loans.
Also the property you are offering you put a value of $3 million on it but other factors come into it. If something happened to the macadamia’s what would be the effect on the value of the property. If the bank decided next year to repose the property, how easy would it be for them to sell a property of that size, in that area, of that worth in an economy that we not sure how it will be in 12 months.
Banks are here to make money and always looking for new customers. If they say no they have a reason for it. Best advice once you get your first no, find out why, make the changes or otherwise each other application will result in the same. As Richard mentioned now after 6 no’s its hard to get finance as it stands out on your credit file like a big red flag
Good advice. Thank you Gibbo1. Just one question, how do potential lenders know that I have applied and been rejected?
Every time you make an application for credit – whether a home loan or a store credit card – there is an entry onto your credit file. Part of the paperwork you sign allows the bank access to your file and for them to report to the credit agency
May be try La Trobe.
Might not be much better rate than what you quoted though (or maybe its them?).
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeMarty
Been there tried them and they said NO.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Qlds007 wrote:I know Linar has answered this post in the other Forum and i agree with his comments.With 6 previous Credit entries on your file now i think the chance of obtaining a loan other than thru Private FInance is slim.
I can think of one lender who may have considered it from day 1 but they certainly wouldnt now as they are not a lender of last resort.
You dont mention how much you want to borrow or what the funds are for?
With Gross income of $4200 less any living expenses etc i think you are not going to be able to show much in the way of serviceability.
Richard, I’m just curious as to your comment “wouldn’t now as they are not a lender of last resort.”. Aren’t those that charge higher interest, always a lender of last resort? For example, we have had finance approved at a high rate >10%, however, we would save thousands of dollars if a bank would approve our loan. So surely the lender would explore all possibilities of lower interest before agreeing to the higher interest, who would inevitably be “the lender of last resort”.
Sorry Richard, I meant the “borrower” would explore all possibilities of lower interest before agreeing to the higher interest, who would inevitably be “the lender of last resort”.
Hi Treb
Sorry i think you misunderstood my comment.
What i was saying was i can think of a major lender who would have done the deal from day 1 at a sensible rate of interest and they are not a lender of last resort but with 6 credit entries on the credit file they would not consider it.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
You must be logged in to reply to this topic. If you don't have an account, you can register here.
