Home Loans, Mortgage Refinance, Bad Credit Home Loans

Non conforming loans are expected to become big business for mortgage brokers during 2012.

MKM Capital head of operations Michael Watson believes that Australian mortgage brokers can expect to see non-conforming loans and lenders return to the forefront during 2012.

Non-conforming low-doc home loans got a bad wrap with the introduction of NCCP legislation in 2011. However low doc home loans can still be NCCP compliant and should not be avoided.

“The biggest challenge arising from the introduction of the NCCP has been to communicate to brokers that low doc, coded loans can still be written with confidence in the NCCP environment.

Watson said that brokers should capitalise...

A recent survey suggests that 80% of Australians are concerned about their ability to maintain repayments on all their loans and debts. There is significant interest from consumers at this time of the year in debt consolidation in order to reduce monthly repayments and not fall into arrears.

The biannual survey by data intelligence company Veda, discovered that 4 out of 5 Australians are worried about their ability to meet debt repayments in the future. This is a significant increase from 3 our of 4  this time last year.

Given the global economic woes and economic problems locally, many businesses are closing their doors leaving twenty percent of survey respondents are struggling with their current levels of debts.

However,...

It seems that borrowers are slowly getting used to their existing levels of debt and repayment obligations, as there are signs that mortgage arrears are coming down.

The Fitch Dinkum Index demonstrates borrowers are finding it easier to meet their repayments. Home Loan Arrears in the 30-plus day category have declined for the second consecutive quarter, and Fitch structured finance analyst Courtney Miller said that further declines are expected to this figure over the next 12 months.

“The stable mortgage performance in Q311 is an indication of borrowers coping better with their loans.

Given the recent drops in cash rate by the RBA and the subsequent rate reduction for most loans, it should be easier for mortgage holders to keep up...

New data reveals that as many as 80 families lose their homes in Australia every month due to financial hardship excessive debts and mortgage arrears.

New data reveals 80 houses are repossessed a month, while up to a third of people in the worst-hit suburbs are struggling to cover rent payments.

The rental stress epidemic has engulfed NSW, where up totals of the families experiencing rental stress have to forego purchasing essential items such as food.

Borrowers who can not meet their home loan repayments generally have their homes repossessed by the lender. The number of people whose homes were repossessed by banks during 2011 has soared by 22.5 per cent.

In the 10 months to November, the Supreme Court issued 2466 writs of possession, with 825 executed.

Many...

Low doc loans have been singled out as an area of compliance concern as a result of ASIC review of Australian Mortgage Brokers.

The review, included a relatively small sample of only 16 mortgage brokers and their complance with NCCP in the six months since NCCP regulations were introduced.

Results of ASIC review had identified that low doc loans are an area of potential risk of non-compliance with respect to responsible lending regulations.

The major risk in terms of non-compliance with the responsible lending for loans promoted as low doc was the steps taken to verify a consumer’s income, as many brokers continue to view low doc loans as they would asset loans.

“The requirement is for brokers to make reasonable inquiries about...

Over the past few months the demand for small unsecured bad credit loans has exponentially increased. More and more applicants are looking for loans up to $5,000 without being able to offer any security for their applications. Many are already struggling with an array of small debts and are seeking a debt consolidation solution.

Unfortunately borrowing options are limited for such applicants. While there is access to small payday or cash loans, these tend to level out at $2,000 only, and with that the borrower must demonstrate ability to repay the loan from their income in a matter of weeks. These loans are quite expensive and are not a debt consolidation solution. They were...

Want to borrow money with a bad credit history? It can be done!  However borrowers with some bad credit history need to understand that while they may qualify for some loans, other loans will remain outside of their reach while their credit report reflect defaults.

Essentially unsecured bad credit personal loans do not exist. Various businesses appear to advertise bad credit loans, but read the fine print, most loans will require the borrower to offer some security either in the form of a motor vehicle or a house. Only small payday loans are available but these normally cut out at around $1500 and are only offered for a period of weeks not months or years.

Borrowers looking for a bad credit home loan need to have reasonable income and sufficient...

Since the GFC, Australian businesses and families have changes significantly their banking habits as well as their attitude to loans and debt.

It seems that Australia has seen the slowest increase in overall loans taken on by all sectors over the last seven years.

Value of household loans increased from $832 billion in August 2005 to $1.3 trillion in August 2011; but the growth in the last 12 months has been just 5 per cent or $66 billion, the slowest growth since 2005.

“The slowdown in business borrowing has been even more pronounced – in fact, we’ve had negative growth over the last 3 years.

Given the current economic climate, the need to keep debt in check has driven much the the financial decisions taken by businesses, consequently businesses had $65 billion less of debt in August 2011 compared to August 2008.

Not all the debt...

Debt consolidation loans are still very much in demand with borrowers looking to either a personal loan to consolidate high interest unsecured debts into a single payment, or a mortgage refinance which will allow the applicant to consolidate high interest debts such a store cards, credit cards and other loans into their home loan.

Borrowers with some history of bad credit need to be able to offer the security of real estate or an unencumbered motor vehicle in order to qualify for a debt consolidation loan. Car loans for debt consolidation purposes are available where a borrower is able to demonstrate that they are employed and can afford the set loan repayments.

Borrowers with bad credit history who are unable to offer loan security will not qualify for a debt...

Outer suburbs of Melbourne are facing huge debt problems according to a recent report by Moody’s. The same debt problems are replicated amongst property owners right across Australia.

It seems that Melbourne’s northwestern suburbs are amongst the worst debt ridden areas in the country.

More expensive inner-city areas have less debt strain as they tend to have more equity in their homes.

Homeowners who borrowed a large portion of their home loans against their home are in trouble, with late payments and defaults.

And separate RP Data research reveals 95,130 homes bought nationwide since the global financial crisis are...