Line of Credit

Any general questions you might have in regards to loans and finance.
Mikey81
Posts: 6
Joined: Thu Feb 11, 2010 5:36 pm

Line of Credit

Postby Mikey81 » Sun Feb 14, 2010 5:46 pm

Hi

I'm interested in the low doc line of credit loan.

I was laid off from my job 3 months ago, currently working with a friend in his wall / ceiling gyprock contracting business. I receive my wages mostly as cash in hand and on a irregular basis, thus my doubt that banks will consider me as an applicant. I own a 2 bedroom apartment which I bought for 380K last year. Personal loan debt of around 4K with no other debts. Looking to borrow 20 - 30K.

Are the any lenders that are able to help me? Please advise of my options.

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Otto Dargan
Mortgage Specialist
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Location: Sydney, Australia
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Re: Line of Credit

Postby Otto Dargan » Sun Feb 14, 2010 5:51 pm

Hi Mikey,

As long as your income from working with your friend is sufficient to repay the loan then we may be able to help you. If you are employed however your income is hard to prove then as a general rule we can get you a no payslips home loan for up to 80% of your property value. The only requirements of the lender is a letter from your employer as evidence of your income. If you cannot provide any evidence whatsoever then we can get you a loan for up to 60% of the property value.

Please call us on 1300 889 743.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Mikey81
Posts: 6
Joined: Thu Feb 11, 2010 5:36 pm

Re: Line of Credit

Postby Mikey81 » Sun Feb 14, 2010 6:31 pm

Hi Otto

So if I can get an employer letter I can get the no payslips 80% home loan and with no income evidence a 60% property value home loan? Are these the line of credit loans?

I'm not looking for a home loan because I'm not looking to buy a property. I'm interested in the line of credit loan because I read that it can be used for any worthwhile purpose like renovating.

Also, is my apartment suitable as security for the loan?

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Otto Dargan
Mortgage Specialist
Posts: 7729
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Line of Credit

Postby Otto Dargan » Mon Feb 15, 2010 7:32 am

Yes a standard apartment would be fine as security as long as it was over 50m2 not including balconies and car spaces. Smaller apartments may be accepted on a case by case basis.

Yes the income evidence you have listed is correct. These loans are available as a line of credit however a normal home loan can also be used for any worthwhile purpose, so you could use either type of loan.

The interest rates on both loan types are very competitive with excellent discounts below the bank standard variable rate.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Mikey81
Posts: 6
Joined: Thu Feb 11, 2010 5:36 pm

Re: Line of Credit

Postby Mikey81 » Mon Feb 15, 2010 4:07 pm

Hello Otto

The total area minus balcony and car park is 68 metres squared so no problems there.

I live in Western Australia, you guys are ok to service me right?

Also, how long (approximately) does the whole loan process take? And what sorts of documents will I need to provide?

Finally, if you can provide a figure for the interest rate of both the 80% and 60% loan, even if it's an estimate, I would be grateful. And what sorts of fees are attached with them e.g. loan processing fee, monthly account fee etc.

Thanks.

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Otto Dargan
Mortgage Specialist
Posts: 7729
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Line of Credit

Postby Otto Dargan » Mon Feb 15, 2010 4:21 pm

For both options the rate is in the range 5.9% to 6.1% (at current rates). Fees depend on if you go for a basic loan (est $700 establishment fees including hidden fees, no ongoing fees) or a professional pack (Est $100 in establishment fees and $300 to $400 in annual fees). For a line of credit as such the rate may be closer to 6.6% however I believe you can achieve your goal with a cheaper basic loan.

Please call us on 1300 889 743 to discuss further details.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts


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