Specialist lenders-solutions when the bank says no.
There are times when a persons situation doesn’t match the lending policies of standard banks and lenders. In these cases specialist lenders may have the answer. There are many reasons why:
- A persons income type, ie heavily reliant on government payments or casual employment
- Self employed for less than two years
- Credit issues, such as defaults, judgements, recently discharged from bankruptcy
- Large number of debts to consolidate into a home loan
- Use of alternate documentation to confirm self employed income
- Refinance of home loans with mortgage arrears
- Payments of tax debts
- Mortgage Insurance issues
- Failed banks credit scoring
- Short term PAYG employment
These are some of the situations that may require use of specialist lenders.
Specialist lenders look at each application and assess according to it’s positives and negatives, that is they take a real life approach. The interest rate and fees that you pay with specialist lenders are higher than with standard banks. The rate you will be charged will depend on the perceived risk of the loan. The higher the risk the higher the rate.
Specialist lenders are normally used as a stepping stone to repairing a persons borrowing history and performance. After 12 to 24 months of good repayment history with a specialist lender it may be possible to refinance the loan. This maybe an ‘internal’ refinance with the specialist lender (if possible) which changes the loan to a standard type of loan and interest rate. If this is not possible, the loan maybe refinanced to a normal bank loan.
Specialist lenders are not the answer to every situation as they too have their limitation, but they can be a good choice when a persons circumstances don’t fit normal bank lending.
If you have a situation as described above, please contact me and I will see whether one of our specialist lenders may have a solution for you.
Sandra Mueller says
Hello, I am looking to purchase a parcel of land in the Crabtree area. My husband is working fulltime but on a low income and i am only working casual on call. Could you please contact me to discuss this matter. We have a deposit of $18000 and the block we are looking at is around $95000.
Regards
Sandra
Paul Gilhooly says
Dear Sandra,
Did you find a solution to buying the land in Crabtree? I did reply to you on the 12/9, but if you still need assistance please email me directly at paul@halogenhomeloans.com.au or call me on 0410 520 398.
Warm regards
Paul Gilhooly
Paul Gilhooly says
It is generally very difficult to get a loan if the person has been self employed for less than a year even with several years PAYG history. I say difficult but perhaps not impossible. It will partly depend on how much deposit the person has. If the person has a 20% deposit and enough to cover purchase costs ie stamp duty, legal fees etc it may be possible.
It is likely that we would need to use a specialist lender as I doubt a standard bank etc would consider the application.