Case Study 1

Refinancing with a Part IX Debt Agreement

Jennifer and Michael were given the opportunity to make a favourable purchase of a property owned by a family member. However they had entered into a Part IX debt agreement a couple of years previously and were still paying it off at $350/month.

A Part IX debt agreement is a binding agreement with creditors where debts are paid off rather than declare bankruptcy.

Not all of Jennifer and Michael’s home loan defaults had been paid with their Part IX debt agreement. They had been to several mortgage brokers before contacting Non Conforming Mortgages, but due to the couple's poor credit history and the location of the property, none were able to help.

We found they had enough equity to payout the Part IX debt agreement and the remaining defaults, enabling the refinancing of a $160,000 mortgage at 9.75%, costing them only $318/week - lower than the rent they were previously paying.

Note: If you have entered into a Part IX debt agreement you must have a 20% deposit to purchase a property.

Case Study 2

Mortgage Defaults and Private Mortgage

Dianne had a legal background and had been through a difficult divorce. Currently only employed part-time and looking to relocate from the country to the city to find full time employment, Diane wanted funds to payout some debts and to renovate her investment property to increase its sale price before selling it. Her divorce meant she had a few mortgage defaults and her low income prevented her from getting an approval with other mortgage brokers or lenders.

We put Dianne on a private mortgage with a one year term, paying the interest in advance. This allowed her home loan defaults to be paid off, and her renovations to be completed within one year to achieve a higher sale price. In this way we gave Dianne the time she needed to get her life back on track.

Note: Private mortgages are only available on investment properties and only suited in special circumstances.

Case Study 3

Loan Refinancing with Part-time work

Bob and Mary were with a non conforming lender three years ago and were paying over 11.00% interest. Although they had been making all their mortgage repayments on time, they had been declined for refinancing at a lower rate because they still had some unpaid defaults on their credit file. Due to their good payment record we were able to secure them a lower rate of 9.50% and to consolidate their defaults. This gave Bob and Mary the final stepping stone they needed to switch to a prime traditional mortgage.

Note: To refinance from an existing non conforming lender you must have enough equity (generally 20%) and a good record on your current home loan.

Case Study 4

Home Loan Defaults and Refinance due to divorce

Michael is an IT professional and had three paid defaults on his credit file from his divorce. He had also had to refinance his home loan to payout his ex-wife. Michael had 40% equity and stable employment so we were able to get him a near prime fixed rate of 8.85%. Needless to say, Michael was very happy with this outcome.

Note: Pricing is dependent on many factors – your credit file (the number of defaults/judgements you have, the type of defaults, the date they were put on your credit file and whether they are paid or not), whether you require a low doc or full doc loan and the amount of equity you have in your property. Pricing is always on a case by case basis.

           

We are full members of the Mortgage & Finance Association of Australia (MFAA)
and COSL and an Accredited Member of the Finance Brokers Association of Australia Ltd (FBAA)
and operate under their codes of practice.

Non Traditional Home Loan Specialist

If you have defaults or mortgage arrears and you need a non traditional home loan specialist - we can help!
We are available to talk to you, please contact us.