Archive for the ‘Credit File’ Category

Mortgages In Australia: A Guide For Singapore Citizens

December 5th, 2012 2 Comments
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Couple from Singapore with an Australian mortgageIt is fairly popular for Singaporean citizens to purchase property in Australia, either as an investment, or to live in as a temporary resident. Find out how buying property can differ between the countries, and how you can apply.

Does buying real estate differ in Australia?

When buying property in Australia, citizens of Singapore are treated the same way as other foreign citizens around the world. Despite the size of the country, real estate is not as available and affordable as one may assume.

What many people outside Australia do not realise, is that whilst land may be at a premium, land that is available for development, and properties to purchase, are not always easy to buy and afforible.

Do not worry! Mortgages brokers such as us here at the Home Loan Experts can help you find what you are after! We specialise in helping foreign citizens and temporary residents get Australian mortgages approved at competitive rates with low repayments.

For more information contact us on 1300 363 843 (when outside Australia call +61 2 8668 4038), or enquire online and one of our brokers will contact you.

What is a mortgage broker?

In nations such as Australia, the US, and the UK, the mortgage broking industry has existed for a very long time. However, much of the property in Singapore has been public housing so the industry there is fairly new. Therefore, many people in Singapore are not overly familiar with how they operate.

The services of a mortgage broker are free in Australia for most standard loan applications! This is because when a loan is approved, they are paid for their services by the banks themselves.

A broker operates as a mediator between you and a bank. Initially, you will take your details such as your employment, income, and savings to them. They will then assess your financial status and compare this to what the banks and lenders have on offer. Some brokers in Australia work with over 40 different financial institutions!

The mortgage broker should understand the lending policies of the different lenders, and apply to one they believe most likely to approve your application. This comparison also enables them to pick and choose, and often find better mortgages with lower fees and competitive rates.

Some people in Australia do apply to a bank or lender themselves. If this is the path you take it is important to remember that a bank will only offer you its own products. When you apply directly the bank has no competition, and is less likely to offer discounts on fees and interest rates.

Please also note! Every time you have a loan application declined in Australia, this goes on your permanent record. Known as your credit file, any negative financial transaction recorded here will lower the chance of approval next time you apply. This is one of the reasons why a broker can be a better option.

Do we need to apply for Australian Government approval?

Citizens and permanent residents of Singapore need to apply to the Foreign Investment Review Board (FIRB). This government body determines the level of foreign investment within Australia, including all types of real estate and property.

How much can we borrow?

In most cases, foreigners in Australia can borrow up to 70% or 80% of the value of the property they are purchasing. This is known as the loan to value ratio (LVR). In Singapore, this is known similarly, as the LTV ratio.

If you have a spouse or partner in Australia, you may be able to borrow up to 95% LVR. This is under the condition that legally, you live in the property together as joint tenants, not tenants in common. However, usually the amount is restricted to 90% LVR, or less.

When borrowing over 80% of the property value, note that you will most likely be required to pay insurance to cover the bank if you default on repayments. It is a one off payment at the commencement of your mortgage, and is known as lenders mortgage insurance (LMI).

Apply for an Australian mortgage today!

Do you have property or real estate in mind? We work with over 40 different banks and lenders, and can give you a greater chance of walking away with a great mortgage at competitive rates, on the property you desire.

Contact our specialist brokers on 1300 363 843 (when outside Australia call +61 2 8668 4038), or enquire online and they will contact you.

Credit File

March 26th, 2010 No Comments
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A person’s credit file is the identity essential to the banks and lenders when assessing a home loan application for approval. You may not know it, but each time you miss paying a bill, or default on a loan it gets listed in your credit file  which the banks have access to.
For those who are currently in a good credit standing, if you continue to pay your bills, taxes, loans, utilities, on time then you should be in the good graces of banks and lenders. There are times however when it becomes impossible to keep track of every bill or every payment. There are just too many to take note of. This means there may be instances when you do not realise it, but you may already be in bad credit and you aren’t aware of it.
Fortunately enough there are ways to ensure that you know when you are in bad credit or to find out what your credit history is like. There are companies such as Veda Advantage who can check your credit file for you and send you a statement for your records. Hence, before you even apply for a loan, you should ask for your credit file so you are aware of any defaults you may have made.
For more information on your credit file, and how it affects your capability to get a loan, it would be best to consult the experts on home loans. They can help you get in contact with the companies that can provide you with your credit file. This way there will be no surprises, and you can be sure that your loan application is approved without any credit issues.

Loans while in Bad Credit

March 24th, 2010 No Comments
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Bad days and good days are common in life. This also applies to the income we earn and the unpredictability of certain circumstances such as our health, natural disasters, death, and other events beyond our control.  Due to this fact, there are times when we are in good credit, and have a good credit score, and in other instances we have to cope with bad credit.  Once in bad credit loans become scarce, and hardly are offered.  Your bad credit rating has made most banks and lenders avoid you like the plague.  This is normal as banks and lenders are hesitant to take unecessary and uncalculated risks.  Dealing with a person already with a bad credit rating is a clear and obvious risk, and simply dealing with you would already be a mistake in their eyes.

Fortunately, there are other lenders who see your plight as an opportunity to make some income, and at the same time help you get a loan even when in bad credit.  Due to the risk involved they may charge you higher interest rates, but this is understandable as the risks in dealing with people with bad credit are substantially higher.  The problem is there are only a handful of these non conforming lenders, and they may be hard to find.

To enable you and help you get a home loan while on bad credit it would be best to consult the experts in home loans.  They can lead you and help you find an appropriate lender who is sympathetic and understands your situation.  They can show you the proper steps to be taken to get a bad credit home loan.

Compute Your Credit Score and Get a Loan Now

March 3rd, 2010 No Comments
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One of the most essential and important information to a bank or lender would be your credit score.  The credit score is important because it is made the basis for most of your loan transactions with any bank or lender.  Depending on your credit score, it is either you will have access to a good loan if your score is pleasing to the banks and on the other hand your loan may be disapproved , or  you might have to turn to a non-conforming lender and pay an extremely high interest rate because of a very low credit score.

Thus, if you want to get a good and reasonable loan, you should try to get a good score.  However,  the problem is that there are times when you don’t know what information is used in your credit score in the first place.  The most basic items that would come to mind are how well you pay off all your loans, how well you pay off your bills, whether or not you pay your credit card bills.

Assuming that you do fairly well in paying those items just enumerated?  Do you immediately get a good credit score.  Not necessarily.  There are a lot of other items that banks and lenders look into.  Some of these other items are the amount of savings, are you self-employed, are you a regular or casual employee, do you have other jobs, and the list goes on and on.  With so many factors to consider it can be difficult to determine your credit score on your own.  You may be factoring in certain items that should not be included, and are often not considered by banks in the first place.  You may also be leaving out vital information that banks look for that could improve your credit score.

Fortunately there is a team of experts who can provide you with vital information on loans and your credit score.  With a free credit score test that they have provided you can get a good idea of what your credit score is, and try to improve on that score before any actual loan applications are filed.  With their experience in the loan industry they have a clearer and better idea as to what banks tend to look for and consider in any loan that they would like to grant.

Bad Credit Loan Secrets Most Lenders Don’t Want You to Know

June 22nd, 2009 No Comments
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When it comes to bad credit and home loans, you’ll think of all of the negative things you have heard. All of these messages come from major lenders, most mortgage brokers and the media, and unfortunately, a lot of what is being said is untrue. Put simply, everything about bad credit loans that you have heard is negative, and the reality is, there are positives in the world of bad credit loans. The lenders and most brokers just don’t reveal it, because they don’t want to be patting the back of a competitor. Since I’ve just opened a can of worms, your next question will be: What are the secrets?

Bad Credit Loan Secrets Revealed!

The mother of all bad credit loan secrets, from which many other secrets come from is quite simple: if you have bad credit, home loans that are affordable are out of the question. From this stems the belief that home ownership is impossible for anybody with bad credit, and if you’re bankrupt, there’s no chance at all. According to the big lenders and majority of mortgage brokers, if you have any of the following on your credit file, you have bad credit and are beyond help:

  • Personal bankruptcies;
  • Arrears on mortgages;
  • Repossessed houses;
  • Writs;
  • Judgements; and
  • Defaults.

I can say with almost full certainty that you too have believed this for quite some time. If you have bad credit, maybe it has even resulted in you avoiding the prospect of home ownership. Perhaps you have been caught in the rental trap for years, because you’re drowning in debt? Even if this is the case, something can be done. The banks don’t want to know you, but there are companies that do, the competitors of the major lenders and banks, the non-conforming lenders. Bad credit mortgage specialists focus on securing bad credit home loans for people with financial difficulties. They can do the same for you too. Only thing is you’ll never hear the banks telling you that. They want you to believe that home ownership and loans are out of the question for you, so you won’t approach them and waste their time. They consider bad credit clients to be too difficult. Put simply, if you have bad credit, you’re too much work. More effort is required to find a competitive home loan if you have bad credit, so the banks and majority of mortgage brokers will tell you to go away. They won’t tell you to come to non-conforming lenders and brokers though, because in a sense, they are competing with them.

Now you know the secrets the majority of lenders and most mortgage brokers are keeping from you, you can turn to a broker, with non-conforming lender on their panel, that can turn your dreams of home ownership and financial stability into a reality.