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In the current lending climate, it is very difficult to find a conventional lender to provide development finance with a credit default. Even with no default there are quite a few hurdles to jump. Post covid, as everyone knows thew construction sector has some issues. As every week we are hearing about construction businesses closing. Therefore, i would recommed setting up your finances in a solid position. Also, possibly considering a credit removal company to work on cleaning your credit file. However, this is a mine field of unreliable operators where they take your money then dont deliver as promised. There are some companies that pay on removal of the default as well – i would consider these companies.
I hope this helps.
Colin Kidd
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This reply was modified 1 month, 2 weeks ago by
lsn. Reason: error in text -
This reply was modified 1 month, 2 weeks ago by lsn.
lsn | Loan Saver Network
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Hi Zaman,
Increase your CBA loan or put a split on that loan to the amount of the deposit plus fees required to secure your purchase. If you want to avoid LMI draw 20% plus fees, if you want to minimise impacting your equity in first property draw minimum, but LMI will be paid.
Hope this helps.
Regards
Colin Kidd
Loan Saver Network
http://www.loansaver.com.au
http://www.loansaver.net.au
When the Banks say “no”. We say GO!
m: 0404 362 262lsn | Loan Saver Network
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Hi Nat,
How much is the fixed price contract? Minus the additional 40k?Regards
Colin Kidd
Loan Saver Network
http://www.loansaver.com.au
http://www.loansaver.net.au
When the Banks say “no”. We say GO!
m: 0404 362 262lsn | Loan Saver Network
https://loansaver.com.au
Email Me | Phone MeEveryone Deserves a Fresh Start!
Yes, this would be viewed as a car loan/ lease. There would generally be no property or land that a mortgage could be held over. Even if it could the property would most likely be unsuitable for a lender to take as security as the house could simply be towed away… reducing the value of lenders security.
Regards
Colin Kidd
Loan Saver Network
http://www.loansaver.com.au
When the Banks say “no”. We say GO!
m: 0404 362 262lsn | Loan Saver Network
https://loansaver.com.au
Email Me | Phone MeEveryone Deserves a Fresh Start!
I must re inforce the word contestable, which mean it is contestable if it is another parties fault. Ie the lender, or business who initially put it there. I have successfully been involved in transactions where the CRAA default was removed. But again this default was listed and acknowledged as a mistake by the business who listed it. Which was then removed from clients CRAA file. Paying a bill or loan after it is listed only notes the default as paid. Under the privacy act a consumer has the right to amend incorrect information on their CRAA file.
See http://www.privacy.gov.au/publications/craa.html#3 for more information regarding your credit file, how to amend and access your information.Regards
Colin Kidd
Loan Saver Network
http://www.loansaver.com.au
When the Banks say “no”. We say GO!
m: 0404 362 262lsn | Loan Saver Network
https://loansaver.com.au
Email Me | Phone MeEveryone Deserves a Fresh Start!
Hi,
Yes it is not impossible to have a CRAA default removed. But to take your case to Baycorp you will really need to have substantiated evidence showing you that were not at cause of the default. Moving house, not recieving statement etc will generally not be acceptable. There is a company that does deal in removing contestable CRAA defaults. But they must be a default that is contestable. They are called DR Capital. Google them, they’ll cost you somewhere around $2k to contest with no guarantee. Depending on the type of default ,LVR, lender (maybe LMI) percieved risk you may still be eligable for finance. This is the area i work in.
Hope this helps.Regards
Colin Kidd
Loan Saver Network
http://www.loansaver.com.au
When the Banks say “no”. We say GO!
m: 0404 362 262lsn | Loan Saver Network
https://loansaver.com.au
Email Me | Phone MeEveryone Deserves a Fresh Start!
Just be aware there are different regulations for broking in WA than the rest of the country. They will need to have a WA Brokers licence to write your loans. Occasionally i get the odd referral from clients in Perth, but i refer them on to a WA firm for this very reason.
Regards
Colin Kidd
Loan Saver Network
http://www.loansaver.com.au
m: 0404 362 262lsn | Loan Saver Network
https://loansaver.com.au
Email Me | Phone MeEveryone Deserves a Fresh Start!
And/or Nominees is something you put on the contract if you want to have the option to nominate or add another party as a purchaser.
For example- the contract would be signed as:
John Smith and/or nomineesThis would allow you to nominate or include another party in the contract of sale, change the purchaser completely to (example): Jan Smith. Or XYZ Pty Ltd, or another entity.
You may also be required to complete a nomination form at application for the finance, this is a document nominating who the nominee is. It may be a lender requirement.
Hope this helps.
Regards
Colin Kidd
Loan Saver Network
http://www.loansaver.com.au
m: 0404 362 262lsn | Loan Saver Network
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Email Me | Phone MeEveryone Deserves a Fresh Start!
There are a few conditions to think about including:
-Subject to finance: This should be at least 2 week subject to finance clause from the date of final signature.
-Subject to vacant possesion. (if tenanted and you wish to occupy, or if you don’t want the tenents)
– Subject to building inspection.
– Subject to fittings and fixtures remaining.
– also consider and/or nominees if you need to obtain legal/accounting advice, or if you may wish to change the ownership status.These are the main ones.
If you have any more questions, feel free to ask.
Regards
Colin Kidd
Loan Saver Network
http://www.loansaver.com.au
m: 0404 362 262lsn | Loan Saver Network
https://loansaver.com.au
Email Me | Phone MeEveryone Deserves a Fresh Start!
This all sounds good. Just remember to run it all past your accountant, and i gather your having problems with obtaining a financial planner suited to you.
Regards
Colin Kidd
Loan Saver Network
http://www.loansaver.com.au
m: 0404 362 262lsn | Loan Saver Network
https://loansaver.com.au
Email Me | Phone MeEveryone Deserves a Fresh Start!
Hi Celeste,
Yes, you can do that, but it is what a bank calls a construction loan. There are some benefits and disadvantages of one of these that can push someone out of qualifying.
1. Lender requires the property to be complete (no walls missing etc) prior to starting.
2. Construction must be on a fixed price building contract
3. Difficult for work where you are doing it yourself. (this classed as owner builder.. dirty word to the banks)The situation regarding no paying interest till you use it is correct, this is the same for Line of Credit and construction loans. Though construction loan payments are usually paid direct to the contractor doing the work, and usually over 5 or more stage payments. A line of credit, you are in control, you write the cheques and assess the work at each stage… The difference between the two is simply available equity. ie doing a $200,000 extension and the property is currently valued at $300,000 with a $200,000 loan owing. This would be a case for a construction loan as the equity is not there. If the property was worth $500,000 with the same situation… then the only other requirement is serviceability.
If the loan is small enough and can service… sometimes a personal loan will work best. Then consolidate this loan into your mortgage at a later date.
Everything here is hypothetical.. Full fact finding, needs analysis and solution identifying needs to be done to suit each persons individual circumstances.
Hope this helps.Regards
Colin Kidd
Loan Saver Network
http://www.loansaver.com.au
m: 0404 362 262lsn | Loan Saver Network
https://loansaver.com.au
Email Me | Phone MeEveryone Deserves a Fresh Start!
Just keep in mind… i did not provide a full needs analysis and it might unveil unforeseen issues. Don’t take what i said as a full approval or indication of such… this can only be provided once a full loan application is submitted, and LMI has looked over the deal…. be aware, some lenders use an indicative as a means of removing you from the market ie stop you from approaching other lenders
You should use a broker to assess your full needs… I’m not trying to drum business as i only operate from Vic.
Regards
Colin Kidd
Loan Saver Network
http://www.loansaver.com.aulsn | Loan Saver Network
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Hi Daren,
I couldn’t really tell without doing a full needs analysis, but simply based on your data included you would have no problem qualifying for 300k and probably alot more. Of course each lender has a different capacity they will lend to you, but you are in quite a strong position. Other factors to consider:
Cost of future property will determine LMI consideration and their policies and guidlines, which have tighter guidlines on:
Employment
Postcode
etc etc…
But as i said based on your snapshot, you’re in a good position to choose the right lender moving forward.Regards
Colin Kidd
Loan Saver Network
http://www.loansaver.com.aulsn | Loan Saver Network
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The funds to complete purchase can vary from lender to lender, as each lender can have a different agreement with a mortgage insurer. For example the two main LMI competitors are GE and PMI, then there are some lenders who can self insure their loans. A Mortgage Insurer may provide a higher level of service and better rates to a particular lender, if they are the first choice for their LMI requirements.
Other factors are:
Fixed or Variable?
Offset or No offset?
Ongoing fees or none.
Application fee?
Solicitors fees?
Add the differences up with all these fees and i’m sure you will find that you are paying for that furniture in some way inside of incresed fees. Unless of course its a short run promotion to gain exposure and leads.. if so.. go for it.Regards
Colin Kidd
Loan Saver Network
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Just to ad to the last comment. You will usually require 10-20% deposit for a line of Credit product. Where you can find 100% offset products around for 100% LVR lends. If you were wishing to capitalise the loan payments to the loan itself, in any of these cases the capitalisation with only be the funds you have remaining from the purchase. As you are a First Home buyer, usually funds are limited to savings, and FHOG. Unless you have more equity to put toward the purchase…. for example a parents property. Capitalisation of interest or redrawing equity can only occur if there is equity to draw upon.
Colin Kidd
Loan Saver Network
http://www.loansaver.com.aulsn | Loan Saver Network
https://loansaver.com.au
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