Bad credit histroy

[Made_Man]

Hi All,

Just wanted to hear everyone's thoughts on me and my wife getting a 2nd loan.

My wife and i already have a PPOR loan with cba we now want to get a 2nd loan for an IP. the only issue im facing is that my wife has a bad rating on her credit file from a few years ago that has already been paid in full. just wondering if this will effect us in getting that 2nd loan.

Would also like to add that when we got the 1st loan with cba she had the default on her credit file as unpaid and they still gave us the loan. im unsure if they event noticed that she had the default on her file or not as the default was done before we got married and had the name change.

Thanks in advance for any information.

Regards

 

[Peter_Tersteeg]

Can you demonstrate affordability soley on your income and simply leave your wife out of it entirely?

 

[Made_Man]

Can you demonstrate affordability soley on your income and simply leave your wife out of it entirely?

well im getting $65k and the loan im after is $100k, the current loan amount is $450k.

FYI my wife works PT getting $35k

 

[Peter_Tersteeg]

well im getting $65k and the loan im after is $100k, the current loan amount is $450k.

FYI my wife works PT getting $35k

Not enough info to be certain, but it looks very close. You need to get in touch with a broker.

 

[Rolf Latham]

Get another loan with cba I reckon

Ta

Rolf

 

[Made_Man]

Get another loan with cba I reckon

Ta

Rolf

i would have however when i spoke to them and advised them that the loan is for a GF they said its not a problem however it cant be an owner builder and it needs to be built via a building company. im looking at building as an owner builder

 

[tobe]

i would have however when i spoke to them and advised them that the loan is for a GF they said its not a problem however it cant be an owner builder and it needs to be built via a building company. im looking at building as an owner builder

either owner build with your own cash, or get a contract and get a loan. thems your choices.

 

[Mick C]

Well not consider a "2nd" loan as such....more of a cash out.

What's the LVR? and what sort of bad rating/history are we talking about here??

 

[Shahin_Afarin]

My recommendation is that before you do anything - sit down with your banker or broker and come up with a strategy before you start having random hits on your credit file.

This is because the defaults depend on the circumstances, amount, what it was, etc. I have plenty of 90% lend for people with defaults but you really need to be upfront and have solid documentation explaining the background.

Whatever you do please don't have enquiries on your file. People don't understand the impact of this when things are tight or when there are defaults involved.

Good luck.

Regards

Shahin

 

[Rolf Latham]

The next iteration is that there is a hdt as well and self employed lo doc

Ta

R

 

[Made_Man]

Well not consider a "2nd" loan as such....more of a cash out.

What's the LVR? and what sort of bad rating/history are we talking about here??

LVR is 81% bad credit is for $2000 unpaid credit card back in 2009, once I found out she had that I paid it out in full.

 

[Shahin_Afarin]

81% LVR is fine. The problem is the default. It is not a good default (if a default can be called good) from an amount and type perspective as well as how long it took to pay it.

You need to be careful however you structure the app as a lender could just decline it in a matter of seconds and all you have is a hit on your credit file which is one more thing to worry about.

Regards

Shahin

 

[Made_Man]

Rolf Latham: correct me if im wrong but your suggestions seem a little over the top for such a small amount?

TheFinanceShop: i had a broker for my purchase of my PPOR, i have contacted him about what im wanting to do now and he does not seem to understand much about what im wanting to do. seems like he only understands normal loans plus it takes him over 1 week to get back to anything i ask him to do. i did contact another broker and once i advised him of the situation he advised that the credit file will get in the way and personally doesn't feel confident he will be able to get it done. also said to wait 1 year before before i apply for anything.
forgot to mention that my original broker did get a Conditional Approval for $370k in November with my mother as a guarantor

 

[Shahin_Afarin]

Option 1: Get your broker to find out maximum lending using just your income against all banks. Get them to squeeze out every cent that they can. They need to think outside the square.

Option 2: If that doesn't work - they can find a lender (there are about 3 off the top of my head) that will do it even with the default but the application needs to be structured properly. I'm talking explanations, stat decs, etc. Whatever is necessary before the submission.

Option 3: If option 1 and 2 fail - find another broker.

Option 4 is a specialist lender which will charge you more but I seriously don't think you need to go there.

BTW how on earth has he got a conditional approval with your mum as guarantor? She would need to be on the title? Is that what you really want?

Regards

Shahin

 

[Made_Man]

BTW how on earth has he got a conditional approval with your mum as guarantor? She would need to be on the title? Is that what you really want?

Regards

Shahin

as far as i know he was using the equity she has in her IP

at the moment im leaning towards Option 3

 

[Terry_w]

as far as i know he was using the equity she has in her IP

at the moment im leaning towards Option 3

Option 3 sounds good. Give Shahin a call

 

[Aaron_C]

Ouch...a $2000 finance default is heavy stuff. You may have to go with a non conforming lender if you can't service the loan without relying on your wife's income. Try a lender with better servicing to get her off the loan.

 

[Aaron Sice]

if the debt has been paid in full you can issue them with a "Notice for Discontinuance".

it's a firm request asking them to remove the debt obligation from your credit file.

 

[Made_Man]

if the debt has been paid in full you can issue them with a "Notice for Discontinuance".

it's a firm request asking them to remove the debt obligation from your credit file.

That sounds good, ill look in to that

 

[Terry_w]

if the debt has been paid in full you can issue them with a "Notice for Discontinuance".

it's a firm request asking them to remove the debt obligation from your credit file.

A notice of discontinuance is a form filled in to notify the court that the matter is not proceeding further and that the proceedings will be discontinued.