Hi,
Recently applied for a home loan approx. 450k borrowing 97% on a good combined income of 180k pa. It was rejected by Bankwest and QBE LMI because of a 4 year old default for $400 on my credit file. Should we try again with another lender or will it look bad on our credit file. My partner could go as a single applicant but we would still be borrowing approx. 95%. We have a banking history with BOQ, Suncorp and Aussie credit card (ANZ).
Any advice would be appreciated.
Thanks, Deb
Hi Deb,
Multiple applications will get your credit score hurting, yes.
Did you go direct or via a broker? A good broker would pull your credit file before applying and thus you would avoid even applying to BankWest as they would reject the application, as they did.
If your partner can service all by himself, that could work, yes. otherwise there are lenders that would accept you guys, but at a higher rate.
I’m biased of course but if I were you I would definitely go via a broker. More options, less hassle 😉
Hope this helps?
Happy Easter!
EthanEthan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
THe trouble you will face is that many if not most lenders will use the same mortgage insurer.
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
Is this for a pre-approval, or for a purchase?
It may mean you need to work with another lender who uses a different insurer and remove yourself from the application, dependent on servicing and policy.
Otherwise there are non-LMI options if need be – it’s just a balance of the overall deal which is the best pathway to go down.
Speak with a finance strategist which understands complex/out of the box solutions and you might find this can have a solution which is simple. :)
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
It may mean you need to work with another lender who uses a different insurer and remove yourself from the application, dependent on servicing and policy.
Bingo.
Corey’s on the money. Why not hit him up to get this sorted?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks for your reply. Could you please explain the non LMI options.
Thank you.
DebbieHi Debbie,
There’s a few options – it really depends on your personal circumstances which is the best pathway.
The general gist is that lenders insure their loans against default via LMI – when over 80% they require you to pay the fee. Some lenders in the market are aware that defaults exist and the like and want to cater to that market and so will instead self-insure their loans instead of requiring a third party insurance company.
What this means is that so long as the lender is fine with the deal they will approve it, instead of requiring another party (the insurer) to also approve it, which they will be hesitant to do unless its all squeaky clean.
If you otherwise want to know more about your specific circumstances just flick me an email/give a call and we can go from there.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
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