At ‘Bank Said No’ we specialise in home loans / mortgages Australia Wide.
We can’t help you for personal loans, car loans or credit cards.
In most home loan cases, we deal with average people who just walked into the wrong bank. In other cases, we help people get a home loan who have credit problems, mortgage arrears, self-employed people and ex bankrupts. There are many reasons why banks, building societies and credit unions knock back applications for home loans. But they will generally fall under one of the following groups:
- Credit history – To get a loan through a mainstream lender you generally need to show a good credit history. This includes your credit report which will show any defaults, judgements, writs, bankruptcies and others. It also shows when you have applied for credit in the past 5 (although not the outcome) and will give an indication to the lender of your credit pattern. This is sometimes referred to as credit scoring. Refinacing will also take into account your statement history and in home loan arrears in particular. If your home loan is in arrears, you may still be able to get a loan!
- Employment – Lenders want stable employment histories so that you have a better chance of keeping your job and paying the loan. There are all sorts of interpretations of “stable” and some lenders require you to be in your job for longer than others. Self-employed people generally need to in the same business for 2 years before a mainstream lender will look at them
- Serviceability – The law requires that you have to prove you can afford the loan without financial hardship, whether that’s on wages or self-employed. It’s not your opinion of whether you can or not, it’s the lenders opinion and they use the lenders calculators to determine whether you can or not. All lenders have subtly different calculators so what might not work with one, may work with another
- Security – lenders like properties that are easy to sell if your loan goes bad for whatever reason. So the more unusual the property or zoning or even if it’s in a small town in the middle of nowhere the harder it is to get finance on. Sometimes the property can be just too big. In acreage areas, anything over 25 acres could be a challenge. Properties in a poor state of repair or half constructed are some of the ones the banks particularly don’t like
There Are Specialist Lenders That Can Help…
Failing any one of these areas could be the reason the loan is declined but that’s not necessarily the end of the road. There are a number or specialist lenders who will consider any of these cases. That’s where we come in.
In our ten years of mortgage broking, we have tried to find lenders who will do almost any scenario or situation. If you can think of it, we’ve probably already done it; prevented foreclosures, financed ex-bankrupts, credit impaired self-employed people with no proof of income, people on pension only incomes, purchase of a half constructed house by a credit impaired self-employed person with no proof of income etc. etc.
There are a couple of things that we currently can’t do due to the Global Credit Crisis as there are no longer any lenders offering these loans anymore:
100% purchase home loans (clean credit) – GONE. There is currently no-one doing them. (Although there is a rumour that one or two might be coming back in 2012) The most you will get at the moment is 95% of the purchase price with the ability to capitalize the Lenders Mortgage Insurance to 97%. There are only a few lenders doing these loans and all of them require AT LEAST 3 month’s genuine savings, possibly 6 months. There are a few lenders and brokers still advertising 100% loans but if you read the fine print, they require a guarantor who owns property with equity in it to put up their property as additional security. Then we can do a loan for 100% of the purchase price with a combined Loan to Value ratio (LVR) of no more than 80% across the two properties
Changes to Lo Doc loans – The government changed the rules on lo doc loans on the 1st July 2010. They are no longer as easy to get as they used to be because the lender is now required to show that they have made an attempt to prove you can afford the loan (see lo doc page for more detailed information). Most lenders have gone down one of three options. Prove your income by showing 6 month business bank statements, a letter from the accountant or show 12 months BAS statements. That’s not all though, some will only take a portion of the income shown on these rather than the whole lot as they have formulas to take into account business expenses.
Whatever your particular challenge is, we’re here to help. We’ve tried to make the banksaidno website as informative as possible without confusing you with jargon and technical stuff.
There are also several PDF files scattered around which will help explain common questions Most of all we’re here to talk you through whatever finance challenge you have. Call us on 1300 139 883 to talk to an expert and let’s find a solution to your situation. Alternately you can email your questions to firstname.lastname@example.org or fill in the email inquiry below.
If you know what you want and are ready to go there’s our online application which means we can get going on your application immediately, just click the link below!
Please read our credit guide for further information about lending compliance here:
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