Browse Forums Home Finance Re: Banking finance and Non-banking finance for Home Loan 2Feb 25, 2008 11:05 am After 4 years - we're in! Re: Banking finance and Non-banking finance for Home Loan 4Feb 25, 2008 12:07 pm After 4 years - we're in! Re: Banking finance and Non-banking finance for Home Loan 13Apr 15, 2008 7:03 pm Line of credit loans are NOT for everybody and there has been much written about how many people get into trouble with them and how they have been over-promoted with little regard to how they will be managed in real life.
"All they need to do is stick with the plan.... have their pays placed into the mortgage or offset account and use a 55 day interest free credit card (properly) which is swept monthly." In practice, this doesn't work for lots of people, I guess it goes too against the grain of how they are used to using their money. I am quite disiplined with money but definetley prefer to have my money 'segmented' and do not wish to go down the line of credit route. I agree, the interest rate is not the be all and end all, but it is certainly a big factor. We are with a credit union; credit unions especially the smaller community based ones, in which all members are share-holders, are not so profit driven and offer their customers the best product for them. We were offered a line of credit, it was not an option 'hidden' from us. I am quite happy with the deal with our credit union - competitive interest rate (unlike major banks, rates were not lifted above the reserve bank increase), no account keeping fees, no loan service fees, unlimited re-draw facility, capacity to pay interest and principle during construction. make extra repayments, reasonable loan application fees ($400) no exit fee etc. Re: Banking finance and Non-banking finance for Home Loan 14Jun 16, 2008 8:41 pm Well friends, I have bad credit. No credit card debt…just various debts that are 6 years old. I have no savings, so would have to be 100% financed. Everyone tells me that first time home buyers can get loans easy, but every realtor I have tried to get a home loan through says no. Is there some lending agency that can help me? How do I get a home loan approval? All help will appreciate. Re: Banking finance and Non-banking finance for Home Loan 15Jun 17, 2008 8:52 am elsarobert111 Well friends, I have bad credit. No credit card debt…just various debts that are 6 years old. I have no savings, so would have to be 100% financed. Everyone tells me that first time home buyers can get loans easy, but every realtor I have tried to get a home loan through says no. Is there some lending agency that can help me? How do I get a home loan approval? All help will appreciate. I will be honest and i am sorry if its a little harsh, but you probably should sit down and take a very very long look at your finance and decide if a house is for you rather than listening to your friends and the ads for easy credit. 1. With no savings and some personal loan/car loan type arrangements you are going to be viewed in a very negative light, some banks might want to roll this into the home loan others will simple not offer you a product. I would guess you will end up paying a premium rate through a 'specialist' lender because of this situation. 2. You haven't been able to clear some debts which i am guessing are allot smaller than a home loan in 6 years, have you actually got a budget or are you just rolling through waiting for the lotto numbers. 3. You wount be 100% finance you will be 100+% by the sounds of it, FHOG might clear the stamps on a less than 250k place (in victoria) but anything more and you need to pay for these stamps, also being over 80% you will have Lenders Insurance, in your case being well over 80% this depending on your income might be quite pricey so this will be added to the loan. If you seriously want a home getting quick and easy credit probably isnt the option. Draw up a budget covering fixed living costs like gas, elec, phone, internet, rent, car. Make is really simple so monthly is probably the easiest to work out. Compare this to your incomings (for most people income) look at the difference between the two figures, work out what you need to maintain a life style (i call this play money/discretionary/personal) now what you have left over is the key. With this work out how quickly you can clear your current debt. Then how long it would take to get ~12.5+% for a house deposit (so by the time stamps and lenders insurance is paid you are still at 90%) While you are here look at this left over money + your rent will you be able to cover a home loan, its very important you think about this because while the banks have calculators they will run they are happy for you to live on cat food in the dark with no heating ... I know its boring and crap but its easier at this end to setup your self up rather than try and clean the mess up. Failing that if you are on some nice healthy income (Single 200+, couple 150+) you might be able to roll your random debts into a personal loan and borrow for the house deposit then go through a more main stream lender, not get shafted on the rate, and work towards paying this high interest personal loan off while in the house. Buying a house is easy, affording/financing/live with the house is the hard part. Re: Banking finance and Non-banking finance for Home Loan 16Jun 17, 2008 9:39 am I strongly suggest you wait.
Our sales consultant suggested we do not build a house at the time we initialy approached M@tricon. This was the best advise we ever received. He went through our situation (the sales guy not the finance guy), gave us some suggestions and we came up with a plan. His attitude was that he is happier selling homes that people will be able to conmfortably afford and appreciate rather than spending their life worriying about it being ripped out from under them. We came back a year later, with credit cards gone and a personal loan severly reduced. He ws able to get us into a bigger house than we wanted, and we have never looked back. If only there were more ppl like this in the world. As mentioned Do not be afraid to wait till your situation improves. if you can demonstrate you have stuck to a budget, and reduce your debt, you may e more attractive to borrowers. Adrian B Re: Banking finance and Non-banking finance for Home Loan 17Jun 17, 2008 12:23 pm Did you see the 4 corners program on the ABC a few weeks ago about people over-comitting to credit and then gettting their houses repossessed?
It may not be what you want to hear but Sirgoat and Adrian have some good advice. Sure, if you look hard enough you may find a lender who will lend you the money - but at very high interest rate and many added charges, including MLI which is very expensive. We applied to borrow 100% of our construction loan and found this out, it will be much higher than you expect! (Fortunately, credit union exempted us from paying it due to our assets equity- ie although we had no savings, we owned our own house and an investment unit outright) Perhaps seek the advice of a financial counsellor - set up a realistic plan which can get you into your own home in the long run Re: Banking finance and Non-banking finance for Home Loan 18Jul 02, 2008 6:47 am kanchi7880 Hi Experts, I was looking for bank loan for block of land which I have purchased in Berwick. That land is about to release in March. I got an approval from commbank when i booked that block of land. But then I did bit of research about other finance institution. I come to know that there are few non-banking institution which are offering home loan at really nice interest rate e.g. myrate. I find it offering most lowest interest rate so far. I also talked to couple of blocks recently. They all borrowed from banks. And they all knew about cheaper non-banking finance. I asked a reason, but they even dont know even. Does anyone know is it good to go for non-banking institution for finance? Why people not prefer? Any risk factor involve in it? What benefits banking institution offers that non-banking institution doesnt? http://www.myrate.com.au Please advise me. I am really confused with bank loan. Regards, KanChi Banks lend to a lot of people some of whom default, so they charge higher to make up for losses elsewhere, a small lender on the other hand, can choose who they lend to more carefully. The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 20082 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 36593 From a pure legal perspective, if you've signed the variation, it is a very high bar to have it set aside. No-one can give you legal advice on a forum, but you would need… 3 5856 |