Posted Thursday, 19 November 2015 at 11:36 by Shape Home Loans
Tagged: Self employed Loans | Loan for investment | LVR for investors | APRA lending laws | Loan for owners occupier | Investors | First home buyer | property investing | VEDA | 95% LVR | Low deposit | credit inquiries | Credit file | Refinance | Equity Release | Low Doc loans | Loan declined
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In Australia, when you apply for any credit such as; Home loans/ Credit card/ Store card/ Car loans/ personal loans/ Telecommunication service/ Utility paid in arrears. It will automatically be marked on your credit file for the next 7 years. However the last 12 month is the most critical and can determine if you get approved or declined even on a 80% LVR loan.
Our banking system works differently to overseas market, the less credit inquiries you have the better!
As a general rule.
If your applying for a 80% LVR loan of under ( Min 20% deposit or equity) - Keep the number of credit inquiries below 4 in the last 12 month and below 2 in the last 6 month.
If your applying for a loan over 80% LVR ( 80.1-95% LVR) - Keep the number of credit inquiries below 3 in the last 12 month and below 1 in the last 6 month.
Non-confirming lenders generally deal with people who has a unique situation that does not fit the traditional banks criteria. Having a non conforming lender on your financial is fine as long as you and your broker/banker knows how to present the file and choose the right bank and LVR to present the deal with.
In most cases we find that consumers that have a great credit file does not know they are applying for a loan with a non-conforming bank as it's well "packaged" Ie Some of the big retailers interest free deals and car dealership are done by Ge Money, which is considered a non conforming lender.
Some non-conforming lenders are worst than others, especially the overseas one and payday lenders. There are over hundreds of non-conforming and private lenders, we will list the top 12;
Contact us for a free credit file check and explantion on your file ( NO CREDIT HITS, our one is a "soft hit")
Call: 1300 745626
You can order your own for free here ( Click here to be directed to the free credit check link)
Updated: July 2015