| Overview |
|---|
flagFounded: 1946 |
businessOwned by: Crucis Pty. Ltd. |
monetization_onFunded by: National Australia Bank & Challenger (Advantedge) |
securityLMI provider: None at the moment (loans are not provided above 80% loan to value ratio (LVR)) |
account_balanceLender type: Non-bank, Specialist lender |
VMG specializes in near-prime residential mortgages and hence provides loans to borrowers who might not meet traditional lending requirements of major lenders.
VMG is a family-owned and managed business. Thus far, it has financed over 30,000 home loans.
Being a non-bank specialist lender, VMG focuses on near-prime residential mortgages and has a flexible lending policy. VMG is also well known for its excellent customer service.
How do VMG’s home loans compare?
Pros
- Customer service
- Considers short term ABNs (minimum up to 6 months)
- Investment loans get the same rates as owner-occupied loans
- Bad credit history and no credit history
- Provides Interest only loans
- Downsizing is an acceptable exit strategy
- Airbnb Income
- Impaired loans for mortgage arrears
- Uses a common-sense approach rather than following rigid policies
- Working closely with mortgage brokers
- 24 to 72 hours for conditional approval
- Approves applicants on a probationary period for part-time or full-time jobs
Cons
- Higher interest rates when compared to banks
- Low doc loans and No doc loans are not accepted
- LVR exceeding 80% is not accepted
- Multiple offset accounts are not available
- Non-residents and temporary residents are not accepted
- No branch access
- No guarantor loan option
- Their risk fee can be large
- Will not accept unit size under 50m2 for a studio or student accommodation
What home loan types do VMG have?
VMG has been giving a second chance to customers who are knocked back by major-lenders due to their rigorous credit standards and policies.
The loans that they provide are designed to work well with a flexible credit policy.
The two main types of loans that it provides are debt consolidation loans and small business loans. Asides the two, it also provides a wide range of loans, including but not limited to:
- Impaired loans
- Equity release loans
- Investment loans
- Owner occupied loans
- Loans for business purposes (with residential security provided)
- Do not apply if your loan to value (LVR) is more than 80%; VIC is not at all flexible with its LVR policy.
- You can submit documents to VMG’s credit accessor for review, through your broker, even before sending a formal loan application.
- Since their interest rates are not very competitive, apply only when a major lender is not an option.
VMG client story
Nicholas, VIC
Goal
To refinance a home loan and consolidate some debt.
Situation:
Self-employed, poor debt conduct.
Background:
Nicholas was having a hard time making repayments for his personal debts and credit card debts because of the high-interest rates.
He wanted to refinance his existing home loan to pay off his existing debts through debt consolidation. By doing so, he would have just one loan repayment to make and that too at a much lower residential home loan interest rate.
A home loan is the cheapest credit available in the market.
Nicholas did not have bad credit, but he would often make late repayments which appear on his credit file and is considered to be a higher risk by the lenders.
This meant major-banks would not approve his application as his poor debt conduct would bring down his credit score. So, he had to look for specialist lenders to help him consolidate his debts.
Solution:
Nicholas was able to refinance his home loan for debt consolidation through VMG.
When it comes to credit scores, VIC uses a common-sense approach rather than a strict credit scoring system. Therefore, his poor debt conduct was not a problem for them.
On verifying Robert’s income tax returns, his self-employment too did not pose a significant risk to the lender.
His home loan got approved at a variable rate of 4.89% p.a., which was higher than what major banks would offer but much lower than the interest rate for his personal debts and credit card debts.
The debt consolidation through refinancing made Nicholas financially stronger than before.
What’s more, he will be able to refinance his loan to a major lender at a very competitive interest rate once the previous late repayments fall off his credit file (it appears on your credit file for 24 months).
Tips for applying with VMG
Although VIG is flexible, it does not mean it accepts all types of applications.
Enlisted below are some tips for when applying with VIG:
Use VMG’s home loan application form and checklist of documents required to prepare for your home loan application.
Compare VMG to other lenders
Still not sure which lender is right for you? Talk to one of our specialist mortgage brokers at Home Loan Experts.
We will first discuss your situation, complete a pre-assessment and find a couple of suitable lender options for you.
Give us a call on 1300 889 743 or fill in our free online enquiry form.
