Lending FAQs

Whilst the criteria lenders use to assess your borrowing capacity may seem unchangeable,  there are a couple of things you could look at doing prior to applying that may increase your borrowing power:

  • If possible pay off or reduce any outstanding debts such as personal loans, car loans etc.
  • Pay off or reduce the limit on any credit card, overdraft or line of credit facilities to reduce debt.
  • Set yourself up a budget and stick to it  – this can assist in increasing your savings capacity and potentially provide you with a larger deposit.  In addition it evidences to the lender that you have good money habits.

How quickly we can settle your loan will depend on a number of different factors depending on the nature of your loan. The time between initial application and your settlement involves external parties such as valuers and solicitors which can impact on time frames. We do everything in our power to ensure that a settlement is arranged as quickly and efficiently as possible with minimal delay. See loan processing times for more information.

Sometimes it is possible to re-appoint a valuation done for another lender. The report at the very least would have to be no older than 90 days and be completed by a certified practising valuer acceptable to our lending panel.

This may be possible, it will depend on whether or not your wife has sufficient income to support the loan, including provision for all existing liabilities, living costs and dependents.It will also depend on whether or not your wife has a beneficial interest in the security property.

Generally speaking, 80% is the generally accepted loan to value ratio (LVR) for a lot of credit impaired (bad credit) loans.  Having said that, depending on the nature of the credit default (i.e how small the default is, whether it is paid or not and how long ago it was listed) 90% loan to value ratio can be achievable on a full document basis.

Not necessarily, we have loan products for people with a poor credit history, available at rates no different from those with a clear credit history. Your eligibility for these products would depend on a number of factors. In order to determine your actual rate of interest to suit your circumstances we would need to review such things as the loan amount required, nature and type of your credit impairments (credit defaults, judgements etc) and whether these have been paid or unpaid, their list date and what they were due to. Your overall loan to value ratio (LVR) will also determine your rate of interest.

Guarantors are generally either providing additional income to support the loan (serviceability) or equity in the form of a gifted deposit to assist with funds to complete a purchase. We would only consider a guarantor where there is a clear benefit to them in the transaction.

Not necessarily.  We have some funding options which will allow a refinance to be approved without paying out existing credit impairments.  Often these credit defaults or judgments may be in dispute or alternatively, you may have setup a regular payment plan to reduce them and wish to continue this.  Provided we receive a solid explanation as to why you do not wish them to be paid out we can often assist.

Yes – we see these types of cases often.  More often than not, one party or the other is instructed by their solicitors to stop paying the mortgage until the divorce negotiations have been settled.  In many cases we can assist with this situation again it depends on the overall circumstances and your ability to satisfactorily service the credit you seek.

Yes. We may need to reduce the overall loan term down from the traditional 30 years however depending on your overall circumstances, and provided we can show a clear exit strategy upon your eventual retirement then we can often assist.

Unfortunately No.  In order to obtain loan approval we need to be able to ascertain your self-employed history by way of verification of your ABN registration date and current status.

This depends on your ultimate property purchase price. The maximum loan to value ratio (LVR) for property purchase is 80% using a Self Managed Super Fund (SMSF) loan. On this basis depending on your intended purchase price your super fund would need to have cash or liquid assets reflecting 20% of the purchase price, plus provision for transaction costs such as stamp duty and fees.

We hear this regularly, unfortunately most bank managers as well as other intermediaries often lack the knowledge or expertise to deliver on their promise. It is quite common for most Bank managers to have very little lending authority when it comes to approving a loan. At Red Rock we aim to provide you with the right advice the first time and will generally only provide you with a recommendation once we have a thorough understanding of your situation.  We can obtain loan approvals where others have difficulty because we have specialised knowledge and access to funding sources not regularly available.

There could be several reasons why this is occurring by more commonly than not it has to do with your ability to service the debt.  Whilst you may have a large amount of equity in your property, accessing this equity via a mortgage will increase you monthly liabilities. More often than not, this is may be what is preventing you from obtaining a loan approval.  Due to legislation requirements, in most cases we need to be able to demonstrate that you earn sufficient income to service a mortgage as well as being able to comfortably maintain your living standards.

If you are struggling to meet your existing commitments it is often difficult for us to justify increasing debt.  If the vehicle purchase was for employment and this was going to potentially increase your earning capacity then we could possibly consider it as we may be able to establish a clear benefit to you in applying for additional credit.

This is a common issue, we would strongly suggest that you never ever start a building project without a formally approved loan to cover at the very least the full amount of your building contract. We can only assist with a loan to complete a partially completed property if the construction project is at fixing stage.