When deciding if a loan application is acceptable or not, the major banks all have a standard set of rules that are followed. If people don’t fit those rules then there are home loans designed especially for this and the term is a “non-conforming” home loan.
These loans can also be called “alternative” loans (alt doc) or “specialist” and it’s quite surprising how many people fall into this category and have been declined for a loan.
- Don’t have a perfect credit history
- Have recently started a business or a new job
- Been previously bankrupt
- Have an ATO debt to pay-out
- Have a deposit but it’s an inheritance or a gift
- Have a solid income, but not much of a deposit
- Work means they regularly change jobs, it looks like instability but it’s just the nature of the industry
- A new Australian resident, and therefore the previous credit history can’t be established
- Need to consolidate debts such as personal loans, credit cards or business debt
That’s a lot of people!
Luckily times have changed and today people have many options available to them. There are a good range of alternative loans specifically designed to help all these people and are available through well-established non-bank lenders who offer a flexible and much more holistic approach than traditional lenders.
If you’d like more information talk to us today about how we may be able to put you in touch with a lender that can help if the major banks have said ‘no’ to your loan application.
Bird and Young provide a range of loan solutions including home loans, business loans and loans for special financial circumstances. Call us today on 1300 469 667 or visit birdandyoung.com and find out how we can help you achieve your financial goals.
Disclaimer: Content is not intended to imply any recommendation about any financial product(s) or to constitute tax advice. If you need financial or tax advice you should consult a licensed financial or tax adviser. The information in the article is believed to be reliable at the time of distribution, but neither Bird and Young nor its accredited brokers warrant its completeness or accuracy. For information about whether a non-bank loan may be suitable for you, call us on 1300 469 667