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Non-Conforming Loans

A Non-Conforming Loan is for those who require a mortgage outside ‘traditional’ loan criteria, such as poor credit or employment history, or where the loan may exceed 80% of the security’s value.

What is a non-confirming loan?

A Non-Conforming loan should not be confused with an Alt Doc loan. While both are available to those who are a little ‘outside the square’, a Non-Conforming loan is for those whose circumstances place them outside standard lending criteria.

For example, you may have just commenced at your place of employment or perhaps have been in financial difficulty in the past and therefore have a blemished credit history.

Non-conforming loans are designed for loans that exceed standard lending criteria or don’t fit conventional mortgage guidelines. These can include cases where you are buying a property with a higher value than usual, buying a large apartment or perhaps even buying more than one property at once.

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What to look out for

 

When deciding on a non-conforming home loan, consider the following:

INTEREST RATE:
Bad credit home loans generally have a higher interest rate, so it’s essential to compare home loans to ensure you’re getting the best deal in this category.

COMPARISON RATE:
Always check the comparison rate because it represents the actual cost of your home loan. Since you’re already paying a higher interest rate, you don’t want to pay any more than you need to.

FEES:
Another aspect to consider is the number of fees you will have to pay. For instance, does the potential loan provider have hidden fees, or are they upfront about their extra charges? You must know this information so you won’t be surprised by additional expenses.

REPAYMENTS
When selecting the most appropriate lender, you must be well-versed in the loan repayment schedule. This will allow you to be more organised and know when your monthly payments are due.

Still have questions? Ready to apply?

Understanding what you need in a loan and helping you navigate the many options is what we do best. Get in touch with us on 0418 340 485, or,  if you prefer, you can email us using the form below. We are here to help!