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You can still get a loan even with imperfect credit history – here's how
By: Chan & Naylor
Fortunately, it does happen to some people and it's still possible for them to get finance as lenders have different requirements and responses to minor mistakes when it comes to mortgage applications.
Lo-doc and credit-impaired loans may be suitable for those who have imperfect loan histories but want to purchase a home. The rates on these loans may be higher and may just act as a temporary solution until the borrower can get a full-doc standard home loan. These temporary solutions may have higher rates because of the risk it entails. Understandably, safer loans get better rates.
Here are some Chan & Naylor stories about how our team has arranged finance for clients who had unique circumstances:
There was once a company director whose business had experienced a recent, significant revenue growth. However, banks often require 2 years of business history before approving a loan. The director only wanted to borrow 55% of the property value so she was able to buy her home with a 4.39% interest rate.
Another story is about an investor client who had been quite careless with her loan repayments, so much that her loan application for renovations was rejected. Her loan was refinanced with a non-conforming lender first before Chan & Naylor was able to arrange an investor loan with Citibank at 3.99% after six months.
We also had a couple client where the husband fell sick, resulting in a default on some of their financial commitments. They had asked for our help only after the wife had received an inheritance, which gave them a fresh start. We teamed up to fix their defaults as soon as possible and finance their home purchase through a non-conforming lender. We were able to refinance them with CBA after two years of good repayment history.
In many cases, you may still get a loan even if your credit history is not perfect. However, you may get a higher rate and the process can be complicated as old-lenders often avoid it and specialised lenders are the only ones who go through brokers.
If you would like to know more about finance, you can click here (https://www.chan-
Whether you are a beginner, seasoned investor or business owner, our property and business tax accountants can give you guidance to maximise the financial areas of your life. We can also give you an integrated and tailored solution of your superannuation, taxation, property investment, asset protection, estate planning and more.
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Chan & Naylor Group has nationwide offices in Brisbane and Capalaba in Queensland, Melbourne and Moonee Ponds in Victoria, East Perth in Western Australia, and South West Sydney, Parramatta, Pymble, North Sydney, and Sydney in New South Wales.