Non Conforming Loans

These loans are designed to assist those borrowers who do not meet standard lending criteria. Non Conforming Loans are designed especially to assist a borrower in these circumstances.
Types of Non Conforming Loans that we can help you with:

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Finding out that your home loan has been declined is never a good feeling, but don’t despair – all lenders are not equal, and just because one bank has said “no deal” it doesn’t mean you should give up just yet.

The mortgage insurance in particular have been almost ruthless in their scrutiny of applications. Knowing what lenders and the insurers are looking for before you apply is now vital to avoid having your loan declined. It has never been more important to use the services of an expert Broker

We have Funders that will look at each application and base the loan on merit and other factors up to 95% LVR.

Most Banks and other lenders will not allow cash out to pay tax debts and releasing cash out of equity is considered by the banks to be very risky and they generally want to control cash out. We have funders that will allow unlimited cash out up to 90% of property value without controlling disbursements.
Lenders like to see a borrowers’ history of savings – normally the minimum is 3% – 5% of property value and they like to see this saved over a minimum of 3 months for loans above 85% of property Value.

The following types of savings are considered to be genuine savings.

  • Savings held or accumulated over 3 months.
  • Term deposits held for 3 months.
  • Shares or managed funds held for 3 months.
  • Some funders will consider rental history as part of genuine savings.

We have options for low deposit loans up to 95% lvr without Genuine Savings

Just because you have unusual employment it doesn’t mean that your income isn’t secure. You can get a home loan if your job is secure and your lender bases his assessment on non standard employment. Some of the Employment Sources we can help you with are listed below, each type of contract worker is treated differently by the Lenders. In most cases we can go to 90% LVR however on strong supporting docs we can go to 95% LVR.

PAYG Contract Workers

Contractors can be sole traders with a registered ABN who invoice their employer or PAYG Contractors. An example of different types of contractors is listed below but is not limited to:

  • Mining Contractors
  • IT Consultants
  • Construction Contractor
  • Freelance Journalists
  • Temp / Agency Worker

Short term employed

Most lenders require that you be working in your job full time for six months or more, we have several other lenders that can assist as long as you are now full time

Currently on Probation

Most lenders require that you be working in your job full time for six months or more, we have several other lenders that can assist even if you have been in your job on Probation and have worked in the same industry previously.

Casual Employment or Permanent Part Time

You can borrow up to 90% > 95% of the property value. If you are in a strong financial position and have been in your job for 6 months

Most of the Majors are not lending to older borrowers. We have lenders who can lend provided an exit strategy is in place to borrow funds to purchase both owner occupied and investment properties. Other products include Reverse Mortgage Loans and Aged Care Bonds.
Unfortunately many Lenders do not use your full income, especially people who receive overtime income, bonuses or commission basis or who receive other benefits.

The matrix below gives you an overview of product perimeters however it is best to phone or send in a contact form so we can analyse your unique circumstance.

Bonuses Commission

Overtime and Shift Allowance

100% accepted if length of employment criteria is met – over 12 months and demonstrated over last 12 months
Family Payments 100% accepted (Part A & B and Parenting, Disability, and Carers Payments)
Superannuation 100% may be used (pension or annuities)
Casual or Second Job 100% if 6 months continuous service (with 18 months in same industry previous)
Forms of Guaranteed Income accepted
  • Superannuation Pensions or Annuities
  • Housing Allowance provided by employer or Government bodies
  • Interest and Dividends from cash deposits or share portfolios held for 2 years
  • Inheritance and Trust Beneficiaries (history + confirmation of ongoing payments
  • Total and permanent disability cover
Car allowance 100% may be added to gross taxable income and is applied to car loan or lease payments.
Fully maintained company car $5,000 p.a. may be added to gross taxable income
Child Support /
child maintenance /
Family support
100% accepted if the maintenance agreement is registered with the Child Support Agency.
Three months consistent payments can be evidenced via the borrower’s bank account statements.
A company title is an older style of title that was commonly used for blocks of units before the use of strata titles became common. Most lenders will set their maximum LVR’s at 80% or 70% in some cases however we have access to a lender at 85% of property – must be full income verification.
For residential investment loans many lenders now restrict the number of properties on one title, or properties on one block (regardless if they are strata titled) to a maximum of 2, 3 or 4. We have one lender which will consider residential loans for up a property with up to 8 units on one title.
As long as a unit is 40m2 or more (not including balconies and carports) we should be able to help finance it for you up to normal LVR guidelines, i.e. up to 90% and 95% LVR in some cases.
If the property is less than 40 m2 the maximum LVR we can get for you is 80%. Usually the property would have to be located in an area with high demand. here is no defined minimum size.
Serviced apartments are strata titled apartments generally owned by investors and managed by an entity that holds the management rights to the complex the apartments are located in. Mostly rental income from the apartments is pooled by the management company and all costs are also covered by the pool.
Serviced apartments fall outside of the mortgage insurer’s scope of acceptable properties. For that reason the maximum LVR available would normally be around > 80% LVR if the property can be removed from the letting pool within a reasonable timeframe and there are no restrictions on permanent occupancy of the property under the management agreement. If these conditions are not available the maximum LVR would be 60%.
Funders have strict polices when it comes to lending to borrowers who are purchasing converted properties. If you are buying a strata title unit that was formerly a hotel / motel or a warehouse you are limited to an LVR up to 85%.
Expatriate borrowers are defined as a citizen or permanent resident of Australia that currently resides and are employed in another country OR a citizen or permanent resident of New Zealand that currently resides and is employed in New Zealand.

Maximum Loan $750,000 to 75% LVR Available for both Owner Occupied and Investment.

If the use of the property is solely for the purpose of private residential occupation, including private residential occupation by a tenant, (i.e. must not be used for commercial income producing purposes). You can borrow up to 80% LVR on properties to 60 Hectares / 150 acres. The land must have easy access using an all weather road and the property must be connected to the electricity grid or can be connected without excessive costs. Town water and sewerage services are not required as many Australian properties have tank water or septic tanks instead. Land can be zoned rural or rural residential that is legally allowed to have a dwelling for occupation.
Funders have special lending policies for favorable sales, and although there may be plenty of equity in the property they will limit gift to direct relatives. You can borrow up to 95% LVR of property (Genuine savings is required on loans with mortgage insurance).
Most home loan lenders restrict the amount you can borrow to 80% or even 70% of the property value. However you may be able to borrow up to 95% of the property value using a mortgage loan on a case by case basis for strong applicants and well presented properties.
Converted warehouses may be in an industrial location, have design features that have limited appeal. You may be able to borrow up to 95% LVR for a converted warehouse on a case by case basis depending on location.
Community title usually refers to an entire subdivision. This where the entire community can pay to look after common grounds and gardens, security, tennis courts, pools and any other services. You may be able to borrow up to 95% LVR on a case by case basis depending on location.
Display homes may be accepted where purchased for immediate owner occupation up to 95% LVR. If they are to remain as display, they are limited to LVR 80%.Full valuation is essential to avoid assessments inflated by sale-lease back arrangements.
If part of a resort up to 60% of the property value. If the property can be removed from the letting pool within a reasonable timeframe and there are no restrictions on permanent occupancy of the property under the management agreement up to 80% LVR.
There is no freehold estate land in the Australian Capital but instead there is a leasehold system. If the lessor is the government for a particular state or territory then loans up to 95% LVR are available.
Unfortunately many Funders do not accept Sepp 5 / over 55 villages as security for a home loan or investment loan. You can borrow up to 80% of the value of the property depending on how specialised the property is and what restrictions there are on the resale or leasing of the property
We have mortgage brokers that 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.

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