When is Refinancing Your Home Loan a Good Idea?
16/01/2023Do I Qualify For A Home Loan?
You may be able to qualify for a fast loan easier than you think
Despite what people may think about banks tightening their lending policies, our home loan brokers can often get even the most complex home loans approved.
The mainstream banks are often not interested in loan applicants who don’t fit their lending approval guidelines. Our point of difference is that we specialise in non-conforming, story-based loan scenarios, and have a wealth of experience in that sector.
Put simply, we get loans for people and businesses that other banks usually reject.
A mortgage broker will assess your eligibility for a home loan using the four(4) pillars criteria.
Although qualification criteria can vary slightly between types of loans and types of lenders, the main factors to determine if you qualify for a home loan are:
Credit report
Debt to income ratio (ability to pay in the future)
Credit character – payment history
Security (loan to property value ratio - LVR)
Who will usually find it harder to get a home loan from the mainstream mortgage broker?
People with the following issues may find it more difficult to get a home loan from their usual bank.
If you fall into one of these categories, you may still meet the eligibility criteria for what is called a non-conforming loan.
Challenges.....
- low credit scores
- no credit history
- first home buyer
- retired
- poor loan repayment history
- bankrupt history
What is a non-conforming home loan?
You may not meet the typical home loan borrower criteria required by a major bank.
These loans may attract a higher interest rate or have extra fees, but otherwise have the same characteristics of a traditional home loan (e.g fixed or variable rates, redraw facilities, others).
What is a low doc loan?
If you are self-employed, you may need a low doc loan. This doesn’t mean you have any credit issues, but since you cannot provide the usual proof of income requirements (e.g payslips), you may need to satisfy the loan assessment criteria by providing:
- Tax returns
- Business activity statements
- Letter from accountant
Again, if you don’t have enough supporting documentation to get a low-doc loan, you may still look at getting a non-conforming loan
Our home loan brokers offer fast loans to suit every need
From small business cash-flow loans to prevent insolvency, to larger construction loans for property development, we can provide a wide range of lending solutions.
We can help find the loan that is the best option for your circumstances, as we have access to a large panel of lenders, many of which are specialist lenders.
It is important to seek our guidance to ensure that you are meeting the criteria for the correct type of loan. This saves you time and energy, as we do all the leg work for you.
