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Fri, Aug 8th - 7:50PM

Non-Conforming Home Loans - A Blessing for People with Default History

In the past, lenders considered default history as the most damaging thing for a home loan. They rejected home loan applications of people with defaults in the past. But, today the condition is different. Fortunately, there are some lenders and credit providers who offer home loans to people with default history. Such loans are called non-conforming home loans.

Non-Conforming Home Loans

Non-conforming home loans are the same as regular home loans. But, owing to the extra risk involved, you will most likely have to pay an increased interest rate.

The Criteria to Get a Non-Conforming Home Loans

Non-conforming home loans are only available if you can meet the following criteria:

• You should not be in bankrupt or taking advantage of a part 9 creditor agreement within the Bankruptcy Act. (You can however apply for a non-conforming home loan the day you receive your discharge from such restrictions).

• You need to put together a minimum deposit of 20 per cent (or have 20 per cent equity in the property that you want to refinance). The maximum non-conforming home loan is 80 per cent of the property value. However, any First Home Owner Grant (FHOG) that is available to you will form part of your deposit

• 20 per cent deposit is mandatory even when you have a guarantor. Likewise, it a large salary will not give you relief from the deposit amount.

• You will be required to find money to pay any stamp duty and other costs that outside the loan allocation funds.

• You should have sufficient ongoing income to service the loan repayments. (Usually people on pensions or those who are unemployed cannot obtain a non-conforming home loan).

What Information should be provided to a Non-Conforming Lender?

Lender will look at all the red flags in your credit file. So, if you try to hide something from the lender, you will not improve your ability to get a low rate home loan. In fact, you will simply make the lender more suspicious. It may also lead to your application being declined because you were not transparent enough or fully honest about your circumstances. So, be transparent and open about each and every entry appearing your credit file.

So, next time you venture to out to get a non-conforming home loan, remember to be clear about your financial details. Do keep in mind the other points mentioned in this article. It will ensure stress-free approval.

Quick approval on bad credit mortgage is easy with Singh Finance. If you opt for guarantor home loans, it will be easier. Contact the reputed brokerage firm today and book an appointment.


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Fri, Aug 8th - 6:20AM

Car Finance - How to achieve Success in buying a Car?

An automobile is not just a means of communication. People are passionate about it and their love for the four-wheeled beauty is eternal. If you want to buy a car of your own, here’s some help. The car financing guide will provide you information about the entire process. It will aid you in obtaining a successful finance deal. It includes a list of factors that you should consider before taking a decision. So, let’s start.

Be ready

Financing a car is not like buying a new pair of shoes or a shirt. You will have to be ready with few things.

• Borrowing Capacity

Good things come to those who wait and prepare. So, don’t think you can find your favorite car and the perfect loan package in a day. Before you start looking for your new or used car, you must sit and calculate your budget. Know much you will be able to borrow. Also, ascertain your monthly payments. You can use online calculators for this purpose.

• Documents

A. For PAYG Employed Applicants - Copies of recent 2 pay slips and the Group Certificate for last financial year are required

B. For Self-Employed Applicants - Copies of the last 2 years Tax Returns including full financials

• Deposit

The dealer may ask you to pay a deposit so that he can reserve the car for you. Deposit is ten to twenty per cent of the car loan amount. It is not a small amount. So, you should spend some time in getting together money for it.

What’s available?

Before you start searching for the perfect car loan package, you must have knowledge of the car financing options that are available in the market. There are two main sources of car financing.

1. Car Dealer Finance (i.e. provided by the car dealer)

2. Alternative Car Finance (i.e. provided by banks, credit unions, finance companies, etc.)

After you decide the source of financing, you will have to choose the car financing product. There are a number of car financing options to consider. To make your decision process easier, here is a list:

• Personal Lease

It is an ideal option if you are using the car for personal purpose. The lease term can vary from one to five years. It is available with both fixed and variable interest rate. Its rates are lower than other car finance products. It is possible for you to select the residual value and opt for lower monthly repayment.

• Car Loan

A car loan enables the lender/credit provider to take security over the car that you are buying. It helps them in protecting their investment. To get approved for a car loan, you must purchase your vehicle from a licensed car dealer. You have the benefit of choosing a long term loan (up to seven years) as well as the residual value.

• Personal Loan

These loan packages can be secured or unsecured. If you opt for an unsecured personal loan one, it won’t be secured against the car that you are buying. The interest rates are slightly higher but, you get benefits of flexible loan terms and simpler approval requirements.

• Chattel Mortgage

It is an ideal option if you are using the car for business purpose. The lender will use your car as a security. Sole traders, partnerships, companies, trusts, and ABN holders use this option.

 

The loan term ranges from one to half a decade. It has low interest rates. The monthly payments on the chattel mortgage option are eligible for tax deduction.

So, these are the available options. Once you choose the car finance option, you can apply with a lender or dealer. But, don’t be in a hurry. Take ample time in deciding on the things mentioned in the car finance guide. It will help you in choosing a best finance deal.

Remember that Rome was not built in a day.

Don’t know where, when and how to start seeking your low rate car finance solutions? Singh Finance’s professionally qualified and finance experts will find you the perfect car finance solution package at the right price. Contact us today on 0424 190 908 and make an appointment to have an obligation free assessment.


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