Posts Tagged ‘Lenders’

 Channel Direct  Home Loans mortgage brokers assist clients source the loans suitable to their wants, needs and goals by offering  a choice of lenders and products.

Lenders are falling over themselves to attract business particularly with slashing their fixed rate products.  As mortgage brokers, we have all this information at our finger tips and it is exciting to see some competition back again. Read the rest of this entry »

This week I saw a young couple who are upgrading to a larger property. They had been to their current lender to discuss their home loan and also telephoned a major bank call centre with whom they had a transaction account.  Both of these had said they couldn’t help.  I looked carefully at their positon and realised that they had been given incorrect information over the phone and they would certainly fit within the lender’s policy.

This situation showed the value in using a good mortgage broker and here are my top three reasons:

1. We do all the leg work.
2. We have a wide range of home loans and lenders to choose from not just one.
3. We are the experts over a range of mortgage products.

August issue of industry magazine “Australian Broker” presents industry experts agreeing that “Low-Doc” Lending is now effectively gone or will be gone with the National Consumber Credit Protection (NCCP) laws coming into effect as from 1st January 2011.  This legislation requires brokers and lenders to obtain adequate information and take “reasonable steps” to verify a borrower’s situation at the time of application, requiring additional documentation.  Therefore, a borrower who self certifies his income solely will no longer be accepted.

The irresonsible practices in the US market which preceeded the global financial crises has seen low doc lending in Australia being tarred with the same brush despite our lenders having more stringent processes.  It all comes down to whether Lenders and their repesentatives having done their due diligence as to the loan being “suitable”.

Low doc products remain currently.  However,  1st January 2011 will tell a different story.

Applying for a home loan can be like being let loose on a free flowing river with a small paddle and not much skill.  Some of the boulders that come up may include issues with your Credit Report.  If you have not paid your bills and you have not been in contact with the lender or credit provider to work out a repayment plan, the credit provider is likely to put your file into the hands of a debt collector and a default is lodged.  Even worse, they could take you to Court and issue a Judgement against you.  A listed default will stay on your credit record for 5 years.  Bankruptcy will stay for 7 years.

Lenders assessing any home loan application will also look at the number of times you have applied for credit such as credit cards, store cards, consumer or home loan applications.  If there are multiple applications over a period of time, this can impact on how the lender “scores” you.

Your credit file is your most important asset, treat it with the respect it deserves.

(Photo is of me and my family during our visit to Bali in January.  Nothing like a great deal of excitment and free flowing adrenalin.  Thankfully we had a strong, wily and good looking Balinese guide to get us down safely)