Non Conforming Loan
The Non Conforming Loan is essentially a tailored loan that is designed specially for the borrowers individual circumstances, unlike a
standard loan that is "off the shelf", so to speak.
Non conforming lenders look at the borrowers debt repayment history, income, employment status and general credit worthiness. A detailed
assessment is normally required before an interest rate, loan features and repayment schedule are settled upon.
Self Employed
Loans to self employed people are often referred to as "Low Doc" or "Lo Doc" loans because there is a reduced requirement for
documentary evidence of income.
Generally a signed statement of income from your accountant will secure you a loan up to 65% of valuation.
Variable Income
People in this category include those who have changed jobs or vocations several times in the last couple of years and don't have the stable
employment history and job continuity that most lenders prefer.
Casual employment tends to be more prevalent than full-time work these days and this can result in fluctuating income from
several part time jobs. Traditional lenders are hesitant to lend under these circumstances.
If you can show evidence of good financial management of your income, responsible spending, and no long periods of lack of income
you may still qualify from certain lenders.
Credit Impaired
If you have ever experienced bankruptcy, defaulted on a loan or had problems making loan repayments you will have little
chance of obtaining a loan from a traditional lender. However if you have now got yourself back on a sound financial footing
then specialist lenders will consider your application on its merits.
APPLY FOR A CREDIT IMPAIRED LOAN from specialist lender.
Low Deposit
Banks prefer that you have demonstrated a degree of financial competency by having personally saved at least 5% toward
the deposit on a home as evidenced by your bank account records. If for example, you have a cash lump sum that was given
to you as a gift or inheritance you may not qualify for a traditional loan because you have not met the competency test.
Provided you have a steady income and no major debts then there are lenders who will lend under these circumstances.
Mature Age Borrowers
As you get older you have less time available to make repayments on a loan so obtaining a loan for say a 25 year term is not
an option with most lenders. Repaying an average loan on a pension is just not feasible, so the closer to retirement you get,
the harder it becomes to obtain a loan. Specialist lenders will consider your application on its merits if you can show that you
can meet their requirements.
New Australian Residents
Having an established credit history that can be easily verified is an important part of qualifying for a loan in Australia.
If you are a recent arrival in Australia it is unlikely that you will qualify for a loan from most lenders until you have
been in the country for several years and established a credit record.
Australians living overseas
Most lenders have residency requirements to qualify for a loan. However many Australian citizens are living overseas and making good
incomes which they would like to use to purchase investment properties back in Australia. There are lenders who service this market.
Security Impaired
Banks prefer standard residential property as security for loans. Other types of property and assets are not considered suitable
by many lenders, but once again there are specialist lenders who cater to this market.
You can apply over the Internet and ask the Helpful Professionals at echoice
for a free
no-obligation quote on a Non-conforming Loan.
Thank you for visiting our Non-Conforming Loan web-page. We hope the overview has proved useful.
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