Low documentation home loans

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Low documentation home loans

Are you self employed? Self employed people can often have difficulty in providing all of the documents required in order to prove their income to the satisfaction of the bank or lender. This can mean that self employed people without the required documents are unable to get a full doc loan but may be able to get a low documentation loan.

This can be a distinct advantage for those self employed people that don’t have the required documents but still want to get a home loan. This can be an advantage especially in a rising property market when prices rise quicker than incomes or people ability to save for the deposit.

Low doc home loans can also be useful for self employed people that have a variable income or have had a unusually low income in the latest year. If the latest year’s income will not accurately income and a low doc home loan can enable self employed people to get the home loan they need. Low doc loans are usually more expensive than full documentation loans. However, despite being slightly more expensive low doc loan can be obtained earlier (before full docs are available). When the full docs are available the borrower can upgrade to a full doc loan and have their loan interest rate and cost reduced.

If you are self employed a low doc home loan may be a useful option. However, if you are able to get a full doc home loan this is often the better option because they can be cheaper. Check with a good mortgage broker to see what your options are and what type of loan is suitable for you!

 

Did you know that low doc loans are also available for business purposes? Businesses that do not have the required income documentation may also be able to get a loan. Similarly to loan doc home loans, low doc business loans can be more expensive than full doc business loans.

 

Bad Credit Home Loans

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Bad Credit Home Loans 

Bad credit home loans are for people with:
  • Poor credit history
  • Mortgage arrears
  • Rental arrears
  • Loan defaults
  • Adverse court judgments
  • Discharged bankruptcy
  • Part 9 agreements
  • Part 10 agreements
  • Payment arrangements
Bad credit home loans are also known as:
  • Bad credit loans
  • Bad credit mortgages
  • Bad credit history home loans
  • Credit impaired home loans
  • Credit impaired mortgages
  • Non-conforming home loans
  • Non-conforming mortgages
  • Specialist loans

Who can get a bad credit home loan?


Bad credit history home loans are typically for people who have had unfortunate events such as a relationship breakup, divorce, lossed their job, had an injury, had a business failure or some other loss of income or assets which has resulted in adverse records on their credit file.

In many cases there is a valid reason why you have bad credit.


Bad credit home loans are generally for borrowers who may have:

  • Adverse credit history
  • Existing home loan arrears or defaults
  • Credit card arrears or defaults
  • Personal loan arrears or defaults
  • Too many debts and are finding it difficult to consolidate
  • Been declined by another lender

Bad credit home loan types

  • Home loan with a small paid default
  • Home loan with more than one small paid default
  • Home loan with moderate paid defaults
  • Home loan with large paid defaults
  • Home loan with unpaid defaults
  • Home loan with judgements or court writs
  • Home loan with a part 9 agreement
  • Home loan with discharged bankruptcy
  • Low Doc Bad Credit Home Loans
  • Bad credit consolidation loan

Helpful information for bad credit home loan applicants

Specialist lenders for bad credit

Oak Laurel mortgage brokers know specialist bad credit lenders that are much more flexible than the major banks and many other lenders.

However, the interest rates that are offered reflect the risk to the lender. Therefore, if the lender assesses you as higher risk they will charge you a higher interest rate.

Specialist lenders will assess your bad credit home loan application on a case by case basis and consider your explanation about why you have bad credit and why you need debt relief.

These lenders can often rapidly approve bad credit home loans to meet deadlines from your creditors.

How are bad credit home loans assessed?

Bad credit home loans are assessed on a case by case basis by specialist lenders.

The worse your credit history, the higher the risk the lender will consider you and more limited your options will be and the higher interest rates will be.


Typically, bad credit home loans are priced based on:

How long ago the credit defaults were listed on your credit file / credit report. The more recent the credit problems the worse it looks to the lender.

If you have paid, settled or unpaid defaults/judgments at the time of application. The lender will look more favorably on your application if you have paid rather than unpaid defaults.

The type of the defaults of judgments. Generally phone bills, power bills, water bills, gas bills or other utility related defaults are less severe than bank or financial institution related default listings.


The proportion of the property value (loan to value ratio – LVR) that you are applying to borrow. If the proportion of property value that you are applying to borrow is low it is lower risk for the lender and the interest rate is also typically lower.

Your income situation. Applicants with proof of sufficient income are considered lower risk. If you have stable employment and can provide sufficient evidence (such as pay slips and group certificates) you will be considered as lower risk and receive a lower interest rate all other things being equal. If you are self-employment without the required financials you will be considered higher risk and be charged a higher interest rate all other things being equal.How are bad credit home loans assessed?

 

Construction loans: how do construction loans work

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Construction loans

Building your dream home can be an exciting experience. Taking an idea and turning it into reality can be a rewarding experience if done right. When you build your own home you can decide how you want it to be.

It is not always trouble free. Constructing a home can be a long and expensive process and there are many possibilities that things can go wrong.

If you are borrowing money for the construction of the home then the lender is also taking on the risk that something will go wrong. The major risk is what the finish building will be worth. Some of the other risks include the quality of the builder. If the builder does not finish the building it can be very difficult to sell an unfinished home without providing a significant discount on the price. Even if the builder does finish the home, if the quality of the finished home is poor then the value may be less than expected.

Lenders don’t like taking on a lot of risk and will put in measures / requirement to reduce this risk. In the case of lending to build a home some lenders offer home construction loans, with all their strict criteria, specifically for this purpose.

Typically, a qualified and licensed builder must be engaged. Furthermore, the lender will want you to have a fixed price contract (not a cost plus) with the builder so the lender knows exactly how much it will cost to finish the building. Owner builder construction loans are available but generally only for builders who are building their own property. This means that you may have an especially hard time finding an institution to finance your project if you are intending to be an owner builder.

Having a fixed price with a licensed builder is only one of the many requirements of getting a construction loan.

Did you know that some lenders will allow you to use a construction loan for a three or even four units/townhouses development? If you are undertaking a small development contact us to go through your options.

Find out more about construction loans

Find out about the requirements and process of getting and using a construction loan. Everything you need to know.

Construction loans

Oak Laurel Mortgage Brokers – Construction loans made easy!

Oak Laurel Mortgage Broker

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Home loans

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Home loans

The amount you can borrow will depend on your circumstances including:

 Your income(s)

 The amount of your other loan repayments and other commitments

 The amount of the deposit (cash or equity) you have

 Your eligibility for any grants or rebates such as the First Home Owner Grant or Stamp Duty Concessions

 It is also important that you are able to repay the loan comfortably, even when interest rates (and your repayments) increase in the future.

The interest rate you will be able to get will depend on your circumstances and the loan you choose. Different lenders have different interest rates and they will assess your income and ability to repay the loan when considering your loan application. You will be able to get the amount of loan approved by the lenders. ‘Low doc loan’ which has a higher interest rate is needed for self-employed and unable to supply all of the regular documents required. Generally, the large the amount you borrow the lower the interest rate. A mortgage broker at Oak Laurel can assess which ones have good interest rates and which lenders can approve your loan application. It is difficult to determine a single cheapest home loan. Depending on your situation and how you manage your fund means that using some features may make a loan cheaper. If you have a guarantor with a property you may not need a deposit. If you do not have a guarantor, you will either need cash deposit or provide equity from another property as security. If you are borrowing more than 80% Loan to Value Ratio most lenders will require you to pay Lenders Mortgage Insurance. Lenders mortgage insurance can be a costly expense if your deposit is very small your loan is large. You may also be able to borrow the funds for the lenders mortgage insurance. Most lenders require that you show genuine savings for loans above 80% loan to value ratios. Some lenders do not require you to show genuine saving below 90% loan to value ratios. Genuine saving are funds that you can show that you saved rather than received as a gift. Lenders will require you to provide documentary evidence about your income, employment, liabilities, genuine savings (when you have a loan to value greater than 80%) and property details. They will also need to check your credit file. Each lender have their own criteria for assessing home loan applications. However, all lender base their assessment on four main criteria.

 Serviceability – can you afford to repay the loan, not just at today’s interest rates but when interest rates increase in the future? This considers your income, liabilities (other loan repayments) and other expenses.

 Employment and residential stability. This is things like how long you have been in your current job and or industry or residence. If you have switched jobs and industries and moved around a lot this may concern lenders.

 The amount of deposit that you will contribute. The greater the deposit (equity may be used in place of cash for a deposit) you provide the lower the risk to the lender.

 The security that you provide (the property that the mortgage is over) will influence the minimum amount of deposit that you contribute. Some properties are considered high risk than others. A well located residential property in a capital city will be considered lower risk and easier to sell quickly than a property in a rural area.

See mortgage broker bargains

 

Property development finance

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Australia’s population is growing at a fast pace

With the population of Australia growing and the demand for housing (and other properties) often outstripping supply, the construction of more housing is required to meet Australia’s need.

So what is the solution? It is obvious really, we need more development. We need private individuals or companies/entities to develop or re-develop Australia’s landscape to accommodate our growing population and demand for property.

Making a property development project happen

You may be a smart operator and have identified some real development opportunities but unless you are already super rich you are going to need finance to make your project happen. This can be where some would be developers and even experienced developers come unstuck leaving their potential project as just a dream or worse (potentially much worse) if they committed without securing the finance in advance.

Getting property development finance approved

Getting your property development funding approved does not have to be a problem if the project has real merit. However, banks and other lenders can be extremely risk averse if there are some unresolved problems and end up rejecting your proposal or giving you conditions that you just can’t meet.

So what is the solution? Using an finance broker with experience getting development project finance approved can be a valuable asset to your team of property development professionals (along with your architect, builder, lawyer, project manager etc..).

Want to know more about the factors that impact on funding approvals?

Find out how to get your property development approved.

Do you have a development project that you need to finance?

Contact a property development finance broker.

Concerned about vertical integrated mortgage brokers

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Concerns about mortgage brokers in a submission to the parliamentary inquiry

The Customer Owned Banking Association (COBA) has raised concerns about mortgage brokers in its submission to the parliamentary inquiry into home ownership. The Customer Owned Banking Association’s raised a number of issues including potential for consumers to misunderstand broker limitations in terms of lenders and products offered, the obligations of the broker when offering loans to the customer and a lack of disclosure regarding if the mortgage broker is vertical integrated with a bank.

According to the Mortgage and Finance Association of Australia (MFAA), aggregation/mortgage broker groups that are owned totally or substantially, by the big 4 banks,  comprise an estimate of 40% of all mortgage brokers. The COBA has opposed vertical integration of mortgage broker groups with banks, strongly and repeatedly in the past.

You are right to be concerned about mortgage brokers being owned by the banks and lenders (vertical integration). Many of which have access to only a limited number of lenders and loan products, which may result in customers being directed to their owner’s (Banks) home loan products. Consumers want to visit a mortgage broker so that you can select from a wide range of lenders and loan products. If consumers wanted to go to a Bank and and over pay, then they don’t need to go to a bank owned mortgage broker, just be be fed that bank’s products. Consumers expect that a mortgage broker is owned independently from the bank.

  • Oak Laurel mortgage brokers are NOT owned by a big bank or other lender.

  • Oak Laurel are mortgage brokers independently owned from the big banks.

  • Oak Laurel are family owned mortgage brokers!

 

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Can i get a loan on a 457 visa

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Can i get a loan on a 457 visa

A common question that 457 visa holders ask when they come to Australia is “Can i get a loan on a 457 visa?“.

The answer is yes, you can get a home loan whilst on a 457 visa! But it is best to get professional help.

Some lenders will approve home loans for 457 visa holders. However, this is not widely known even with the bank branch loan officers of the banks that do offer home loans for 457 visa holders.

So what is the solution? Contact Oak Laurel mortgage brokers. Oak Laurel mortgage brokers have a team of specialist lending experts that know the about the different options available for 457 visa holders, and most importantly, how to get the loan approved!

Lending to visa holders such as 457 visa holders is different from lending to Australian residents. There are different requirements and limitations. Many banks will not lend to non-residents and there can be a big difference in the interest rates, fees and other criteria for those banks that do.

Avoid the disappointment of having your loan rejected. Use a mortgage broker like Oak Laurel that has a lending team that specialises in home loans for non-resident and temporary visa holders!

This will maximise your chance of getting a great result!

See more information about home loans for 457 visa holders here: Home loans for 457 visa holders