Problem getting finance

Hi all,

We've recently found an IP and made an offer, offer was accepted, we paid the 10% deposit (first IP), we haven't exchanged contracts yet. Our situation is:

  • We currently have a mortgage that is paid at the rate of 4 times the principal payments
  • We own our vehicles
  • We have no credit card debt and pay the balance monthly
  • We have a good amount in savings and shares
  • I work full time
  • My partner works for himself earning a good income (first year so he can't provide documents to the bank for a mortgage)
  • I have a default from a Telco from approximately 4 years ago. The default was due to a long running dispute with them and to the value of $300, which was paid in full about 3 years ago.

So the NAB agreed to fund the IP loan, but now they have found out about the default, they advised they can't fund it unless we come up with 50% deposit, which we can't. We can certainly service the loan, that isn't the bank's issue. The unit is 36m2, cash positive and in a capital city.

Our current mortgage is with the CBA, but my broker advised that their policy is also very tight.

What other options do we have here? I feel that we have done everything right, and just because of a default we are going to miss this opportunity.
 
You have 2 problems:
1. The credit default - and in the current credit environment lenders & mortgage insurers are looking for reasons to say 'no' not 'yes'.
2. The unit is 36m2. Under 50m2 is a problem for a lot of lenders at the best of times. There are a very few who will do it but they do exist.

One of the MBs on here might be able to map a path forward for you with another lender.
 
90% under 50sqm MI wouldnt go near it with a bar of soap.
I wouldn't waste your time going to the banks either.
Just take your deposit back and move on.
 
hi
just give me a couple of things
the other half has no problem with credit.
setup a structure where you are a beneficary of the structure and then buy in this entity
this is not advice just an idea
now the new co can buy
the other half can be the director and you can be a trust member
have a look at this
as this may well be away for you to go
not saying it will work
but nudge nudge I think it will:D
 
xcept the other party is self mployed without the required history.

Id agree that an 80 % er is possible somewhere, the combination of sub 40 unot, default and self employment and 90 % lend carries more weight than all the positives. Itsdumb I know, but thems the rules

ta
rolf
 
Hi all,

We've recently found an IP and made an offer, offer was accepted, we paid the 10% deposit (first IP), we haven't exchanged contracts yet. Our situation is:

  • We currently have a mortgage that is paid at the rate of 4 times the principal payments
  • We own our vehicles
  • We have no credit card debt and pay the balance monthly
  • We have a good amount in savings and shares
  • I work full time
  • My partner works for himself earning a good income (first year so he can't provide documents to the bank for a mortgage)
  • I have a default from a Telco from approximately 4 years ago. The default was due to a long running dispute with them and to the value of $300, which was paid in full about 3 years ago.

So the NAB agreed to fund the IP loan, but now they have found out about the default, they advised they can't fund it unless we come up with 50% deposit, which we can't. We can certainly service the loan, that isn't the bank's issue. The unit is 36m2, cash positive and in a capital city.

Our current mortgage is with the CBA, but my broker advised that their policy is also very tight.

What other options do we have here? I feel that we have done everything right, and just because of a default we are going to miss this opportunity.

Welcome to the world of post sub-prime, credit contraction, risk mitigation and trust-no-one lending.

NAB and CBA = Genworth Insurance.

Forget it mate....the mortgage brokers on here will tell you the same....Genworth will not even look at any applications with credit defaults, esp. in the last 6 months.

Cut your losses and move onto a lender with inhouse insurance....QBE, ANZ, RAMS....

These defaults will still be issues (you're the scum of the earth right now, in this environment) but its worth a shot.


Good luck.
 
Insurance is only half the problem.

The size of that unit is tiny. 36m2:eek:

The owners have probably had that many contracts fall through and are glad to get rid of it.

Just think.....that same problem might have been your problem one day.:eek:

Regards JO
 
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