First Home Loan Advice/Help

ezza on 15/06/2015 - 14:03

Hi all, I'm looking for some advice/help for my current situation.

I purchased an off-the-plan property over 2 years ago in Melbourne which is finally due to settle in the coming 2 - 3 months. At the time I paid 10% deposit and have the remaining 90% to finance for which is around the $300k mark.
I've randomly search on and off for good home loan rates recently and continually keep circling back to loans.com.au which currently sits at 4.14% for my needs, (borrowing 90% + mortgage insurance). Ofcourse all other brokers can't seem to get anywhere close to this and keep trying to move me away from an online lender. I dont have any reservations of dealing with an online lender at all, all I'm looking for is a good rate, no yearly fees and an offset - the rest I don't care about really.

However…. I have had bad credit in the past around 8-9 years ago I signed a Part IX debt agreement and managed to pay back everything that was owed as part of this agreement within 3 years of it. So naturally this has since been removed from my credit file over a year ago and I haven't had issues in getting finance since (car loan, credit card etc).

I guess my 2 questions are as follows:
1 - Will lenders look at a past Part IX debt agreement that was once upon a time in place? Or look past this (which isn't on my credit file anymore)
2 - Has anyone had dealings with loans.com.au (i had a look online and seem some good review, then some bad ones), do they even look at Part IX's either?

Any other suggestions anyone could recommend would greatly be appreciated :@)

Financial Home Loan Loan

Comments

  • nocure on 15/06/2015 - 14:57
    +2

    I would have thought you would have sorted out the finance at the time of signing.What happens to your 10% deposit if you can't get a loan.

    • ezza on 15/06/2015 - 15:52

      Good point, I signed onto this purchase with a pre-approval when the 7 year window was stuck to my name - peppers home loans approved me with a rate of 7% so i covered my tracks there with no intention to take out their product at the time… knowing the bad debt will drop off my name.

  • tomleonhart on 15/06/2015 - 15:50

    why don't you talk to loans.com.au directly ? They have a chat service :)

    • ezza on 15/06/2015 - 15:53
      +1

      Not sure i should ask if they dig deeper and check for Part IX history even their it would have been removed from my file.

  • siraitken on 15/06/2015 - 15:55
    +2

    If settlement is in 2-3 months you will need to act swiftly as it can take a while preparing documentation at your end and the banks.

    Usually you will need to dig up a multitude of financial information from pay slips, bank statements, payment summaries, etc.

    • ezza on 15/06/2015 - 16:12

      Yes this is my understanding as well, but between the real estate & conveyancer I can't seem to get a straight answer on a date, they say 'yep sometime in August'… so I'm a little stuck with that to do.
      CUA told me they offer pre-approval for 60 days, so if it exceed that then I'm stuck again.
      I have everything available and ready in terms of bank statements, payslips, tax return papers you know it I have it handy lol

      • nocure on 15/06/2015 - 16:52

        Also reduce the credit limits on any cards you have…higher limits will reduce the amount you can borrow.

        • ezza on 15/06/2015 - 19:41

          Yep I heard this too… I should look into this I have 3 cards 2 don't have usage on them and 1 has a little left to pay out.

        • nocure on 15/06/2015 - 20:12

          @ezza:
          You can always raise them again when your loan is finalized.

        • ezza on 15/06/2015 - 20:40
          +1

          @nocure:
          Very true.. thx for the heads up!

      • James Nav on 16/06/2015 - 09:50

        But if the pre-approval of 60 days is exceeded, can't you simply reapply for another 60 days? It will be with minimum fuss since they already approved you once.

        At least, that what I was told when I got my pre approvals.

  • tokziktigah on 15/06/2015 - 16:11
    +1

    I recently signed a loan with HSBC. 4.15% variable and 3.95% fixed. I was a little more comfortable going with a bank that has physical branches and I had all my fees (except government charges) waived e.g. valuation, establishment, annual/monthly fees etc.

    • tomleonhart on 15/06/2015 - 16:32

      what was your LVR though ?

      • tokziktigah on 15/06/2015 - 17:46

        80%. But if you got your 10% down 2-3 years ago, hopefully you'd have an extra 10% saved in that time.

        • tomleonhart on 15/06/2015 - 17:50

          OP is looking to borrow 90% I think. According to his post.

        • ezza on 15/06/2015 - 19:41

          @tomleonhart: Correct I'm looking to borrow 90%

  • whoopdeedoo on 15/06/2015 - 19:43

    has your property gone up in value ?
    perhaps try a lender who'll take its current valuation as oppose to contract price. Could save you thousands in mortgage insurance assuming its gone up in value.
    go to mycreditfile.com.au and check out your credit file.

    any future plans for the property or your next one?
    if you're looking to building a portfolio then online lenders usually aren't the most accommodating in that respect.

    • fillit on 17/06/2015 - 10:44
      -3

      It's very rare for an off the plan property to be valued in excess of the contract price. Part of a valuation is comparable sales, the only time when this could happen is when there are people within the development selling off their properties prior to it being completed and therefore setting precedence that it has indeed increased in price. More often than not, it comes in lower.

      Edit: I do recall seeing it happen once, however in this case there was a delay in the development and there were changes in the area to restrict similar properties being built, therefore increasing the price beyond contract, however very rare to see it happen.

      • whoopdeedoo on 19/06/2015 - 21:07

        i see higher vals every week ;)

  • angelkulit025 on 16/06/2015 - 10:00

    Our current home loan is with loans.com.au, so far I haven't encountered any misleading/hidden charges so far. I'm actually satisfied with their service. I have used them to refinance our homeloan so I don't know if same procedures apply to first time getting a loan from them. Just chat or call them and ask your questions. They will be the one who will approve or reject your application anyway. good luck!

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