You’ve finally found it— the house you’ve dreamt of for years!
And, now that you’re almost at the finish line, it’s within your grasp as you have your offer accepted and a contract to buy it— but wait, it’s slipping away as you wonder if you really can get the finance! It can feel pretty discouraging to look at something slip away from your hands, where you were only inches away from making your visions come to life. But, hey. It’s still a quality problem amongst the context of this year.
There might be some pretty solid reasons why lenders might not choose to accept your home loan application.
Several factors weigh in when it comes to lenders considering your application. And you can’t blame them because after the 2008 housing crash, most of the lenders have become more cautious. We are pretty sure that Covid-19 has impacted smaller lender’s appetite for risk greatly. The rejection of your application could happen as a result of having poor CCR score, unstable employment, or other missing information. (Read more on what you need to know before jumping into a home loan here)
But, as we mentioned earlier, it’s not the end of the line for you. Fortunately, there are other options (or loans) open to you. The value we can offer by having access to 40+ different lenders is choice! So while your usual bank may deny your application, we have experience structuring your loan to specific lenders who will work with your current situation.
These options include:
- A non-conforming loan can help if you can’t get a standard home loan because of poor credit history.
- A low-document loan can help if you’re self-employed and can’t show accurate records of your income over a long period.
Low-deposit or no-deposit loans
- These loans can help if you can only afford a small deposit or no deposit at all.
- Long-term mortgages let you pay smaller amounts over a longer period (up to 40 years).
- The property’s seller might offer you a private financial arrangement, such as a wrap loan or rent–buy scheme.
- A reverse mortgage lets you borrow money against your home, without having to make regular repayments.
The above can help you break into the property market in the short term, but they do come with serious risks.
These risks may include:
- have higher interest rates
- have more fees or charges
- force you to take out additional loan insurance
- leave you worse off over the full term of the loan.
We always recommend discussing your options with a trusted professional before you make any decisions. We always have your best interest at heart and will provide clarity throughout this sometimes daunting process.
It might be hard work, but that’s the beauty of chasing your dreams — and we are here to simplify the process. We work hard to help you realise what you’ve envisioned, no matter your position. We have helped countless clients to secure finance when they thought there were no options, and in the rare case we can’t – we can also provide direction on how to achieve your home ownership dreams…
Have you got a dream?
Have you got a vision to own property that we can help you with? You’ve done the first step, by recognising what you want. Whether you want to save money on your current mortgage, consolidate debts, access extra cash or get a home loan, we can help.