Non-conforming lenders provide loans to borrowers who may not satisfy the standard lenders credit policies. Their share of housing loan market has grown significantly in the recent years.
These non-conforming or specialist lenders are playing an important role in offering loans to borrowers who would otherwise not be able to buy their home.
Such lenders, who a lot of borrowers may not be aware of, can be accessed by their large distribution networks like mortgage brokers.
As per RBA (Box C: Non-conforming Housing Loans) 40% of the non-conforming loans are to individuals with impaired credit history. Other borrowers who can consider such lenders are those with irregular income, erratic saving pattern, non-genuine savings, full time property investors, new immigrants or borrowers who self-certify their income.
While such borrowers may not be able to get loans from traditional lenders, borrowers can benefit from non-conforming lenders by being able to buy a house, demonstrate good financial conduct and then refinance with a traditional lender for a much better interest rate and better products.
You can get in touch with us and we will find a lender that will be suitable to your specific situation.
Comments