Faq’s on our Non Conforming Loans
Faq’s
Got a question on Non Conforming Loans? We’re here to answer. If you don’t see your Question here please call us or make contact through our contact form.
Yes – first-time home buyers are treated the same as any other borrowers. You can also apply for any grants, concessions and stamp duty that may be available in your state.
Yes – All our loans will still come with extra features such as a redraw facilities with ability to make extra repayments and other interest-reducing strategies available such as offset depending on funding lines.
No – if you get approval for a Non Conforming Loan and make all your loan repayments on time, you’ll be in a stronger position to refinance your home loan with a traditional lender once you meet the policy settings of a traditional lender.
Yes – This will effect the interest on your loan, as lenders will rate the loan application on the credentials of the borrower with the lowest credit score.
No – Unfortunately due to high risk we do not allow for third party Guarantees on any loans.
Whilst you are still in your bankruptcy period you are not permitted to apply for a loan unless it is to pay out the Trustee.
For prime loans you would need to be self employed for over 2 years (ABN registered for 2 years) and have 2 years of profitable tax returns.
For a Low Doc Loan you will need to be Self Employed for a minimum 6 months and be able to supply lodged BAS statements or Business Bank Statements to confirm income and profitability.
Our Full Doc Funding will lend to a maximum of 95% of property value on a purchase and 90% on a refinance (major population areas only). You will need extra funds for 5% Deposit / Stamp Duty / Costs.
Our Low Doc Loans will lend to a maximum of 85% of property value on a purchase and 85% on a refinance (major population areas only). You will need extra funds for 15% Deposit / Stamp Duty / Costs.
At Non Conforming Loans, we offer a range of variable interest rates depending on your individual circumstances and the product you apply for. A decision on your rate will be based on a range of different factors including;
- The amount you need to borrow against the property value; known as the Loan-to-Value Ratio (LVR)
- The size of your deposit
- Your source of income
- Credit history
- Assets and liabilities
- And whether the loan is to purchase an owner-occupied property or an investment property.
There are fees and charges associated with every home loan which should be factored in when saving your deposit. For example, establishment/application fee, brokers fee, monthly administration fee, legal fees, stamp duty and mortgage risk fee (if applicable).
There is no limit to the number of debts you can consolidate as long as the outcome of the consolidation puts you in a better financial position. We can look to refinance different types of debt including credit cards, personal loans, car loans, private finance, tax and other business debts
Loan to Value Ratio, commonly referred to just as LVR, is the ratio of the loan size to the property purchase price. The size of the deposit plays a key role in determining the LVR, as usually the larger your deposit, the lower your LVR will be. It is a key part of the loan assessment process and it can affect how much you can borrow from a lender, as well as the interest rate charged and the need purchase mortgage insurance.
To calculate your LVR, divide the amount you need to borrow (e.g. $400,000) by the value of the property (e.g. $500,000) and multiply this by 100 to give you a percentage.
$400,000/$500,000 x 100 = 80% LVR. This would mean you have a 20% deposit of $100,000 towards your $500,000 property.
If you have sufficient income to service the new mortgage then this could be the most appropriate action, especially if your debt situation hasn’t gotten completely out of control. However, unless you are ready to make a commitment to avoid further debt, budgeting to change your spending habits and making extra repayments on your new mortgage, a debt consolidation mortgage is likely to get you further into debt.
Our fully qualified team of Finance professionals will tailor credit advice best suited to your personal financial situation.
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Many Prime home loan lenders have a minimum credit score between 650 > 700 requirement of their applicants. Because of this focus on financial stability, it can be extremely difficult for individuals who have encountered financial hardship or who have bad credit on their credit file in their life to be approved for this loan. Fortunately we do not credit score and will accept all applicants for our home loans.
Call a Specialist Lender
1300 791 329
We specialise in Non Conforming Loans. Please complete our contact Form or Phone Direct and you can discuss your situation with an expert.
If you wish to proceed, then we will help you to complete all the necessary paperwork and liaise with the lender on your behalf. This will include the completion and submission of your home loan application and the on-going communication between all parties until your home purchase is settled.