Policy Niches

Getting a loan approved is a jigsaw

Vanilla lending is simple - all brokers can do it. But a great broker is needed to solve the puzzle and put all the pieces together when the scenario is a little off-centre. To get a loan approved, a good broker will balance 4 competing areas:

However, the cheapest rate may not offer the features you want. Or your circumstances may not be acceptable to the lender. Alternatively, a lender that accepts your circumstances may not lend enough for the transaction.

We have lenders that have various niche policies. Flexible and generous lender policy is often the difference between being approved or declined. For some policies there may only be 1 or 2 lenders that offer it.

The Importance of Policy Niches

Listed below are some of the policy niches we have experience in.  Having access to, and an understanding of these niches means we are able to find an appropriate solution that also satisfies the other 3 pieces of the lending puzzle.

Poor or previous credit issues can result in a decline with most lenders. We have lenders that will:

  • accept discharged bankrupts (even if only discharged for 1 day)
  • accept paid and unpaid defaults
  • accept late debt repayments and arrears
  • won’t credit score – the deal is reviewed manually vs a computer algorithm
  • don’t require statements of debts NOT being refinanced (good for late payments and arrears) consider clients with a low credit score
  • ignore the credit score entirely
  • unlimited cash-out for business
  • $500k cash-out (any purpose incl. ATO debt)
  • $3m cash out (for evidenced business purpose such as refinancing balance sheet Director/Shareholder loans)
  • Including trust distributions to adult children as income without the requirement to be an applicant/guarantor
  • company debt excluded when borrowing in personal names/trust name
  • accept overseas business income
  • 1-day registered ABN (up to 80% LVR with business plan)
  • ‘declared income’ low-doc up to 90% LVR (no tax return or BAS – just an accountant declaration)
  • 3 or 6 months BAS statements to support income
  • no mortgage insurance or risk fee on low-doc loans up to 85%
  • low-doc construction & low-doc SMSF
  • 30 yr Commercial 80% LVR – BAS only required
  • accept casual income <6 mths
  • accept applicants on probation
  • accept 100% of overtime and allowances
  • accept child support income
  • use family tax benefit if the child is <15 rather than <12 like most lenders
  • use the projected return to work income while still on maternity leave
  • allow salary packaged items to be treated as tax-free income
  • generous treatment of negative gearing
  • Air BnB and Uber accepted (with no tax returns)
  • rental payments can demonstrate genuine savings
  • allow personal loans to be used to assist with the deposit if client’s income is strong (eg professionals)
  • allow guarantor loans where the guarantor no longer works
  • allow a 2nd mortgage on the guarantor’s security
  • don’t require the guarantor to service their portion
  • up to 100% income used
  • up to 26 different currencies
  • structuring to avoid foreign acquirer stamp duty
  • allow total borrowing greater than 6x household income (some lenders have no upper limit)
  • allow a member of a couple to use living expenses of a single person
  • only include the applicant’s share of debt – good for spouses that have different individual debts as the other party’s debt can be ignored for servicing
  • 90% loans with no mortgage insurance for professionals
  • provide a rate based on the security & not the purpose (can borrow against an owner-occupied home for investing at lower rates)
  • use actual debt repayments rather than adding a buffer – good when extra borrowing power necessary
  • allow funds to be cashed out up to 80% of home value
  • owner builder & half built
  • investment property expenses & private education included within normal monthly living expenses & not as extra monthly expenses
  • reverse mortgages for seniors