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Bank Rip-Offs Revealed - Click
for Video
About 25% of home loan applications are rejected by the banks in Australia, so difficulty in obtaining a home loan is a fairly widespread problem.
However, many people don't know that in the last 7 years a number of lenders have established themselves to fill this gap. These lenders are known as non-conforming, or sub-prime lenders, and they provide what is commonly known as Low Doc, Reduced Doc, and No Doc loans (some mainstream lenders also provide the Low Doc variety, but are not as flexible as the dedicated non-conforming lenders).
Non-Conforming home loans can be obtained by people in the following categories:
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Self-Employed People |
This includes those with no tax returns and no proof of income (i.e. "No Docs") |
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Recent Arrivals to Australia |
Recent immigrants who have no established credit history |
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Non Residents |
This includes Australians living overseas and non-Australian residents |
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Credit Impaired |
Those with a chequered credit history which might include loan defaults, judgements, or persons who have been discharged from bankruptcy |
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Deposit Impaired |
People who have less than 5% or 10% of the deposit saved for their property, or who have an inadequate savings history |
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Income Impaired |
Low income earners, seasonal, casual, part-time or contract workers |
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Security Impaired |
For loans secured by a country or regional property, or by company title units or serviced apartments |
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Temporarily Unemployed |
Those who’s credit history has suffered due to a period of illness or unemployment preventing them working |
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Failed Business |
Those who’s credit history has suffered due to a failed business |
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Investors |
Those who’s income source fluctuates or is harder to document |
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Older Persons |
People 55yrs or older, including those who’s sole source of income is the aged pension |
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Unemployed Persons |
This includes people on sickness benefits, as well as unemployed CentreLink beneficiaries |
Non-conforming lending can be secured for both individuals, as well as for companies or trusts.
Non-conforming lenders are generally accessed through a mortgage broker.
I Hate Banks.com.au has selected a mortgage broker which deals with clients Australia wide and who can provide you with access to non-conforming lending.
Click here to find out more about this broker.
If you would like to learn more about these types of loans, read our article entitled Non-Conforming Lending.
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