Another Tricky Scenario - Credit defaults

Scenario:

-Client wanted to purchase an Owner Occupied home at 90% LVR in Sydney.

Issues:
-Her credit report showed prior home loan repayment issues within the last 12 months.
-Credit report actually showed an X, which meant this facility was more than 180 days in arrears.
-She had an Investment property with someone else that was in a location that struggled through Covid. It was not tenanted for a long period of time and they fell behind on repayments with their lender.
-The property was finally sold and debt cleared but clients credit file was heavily impacted.

Solution:

-The investment mortgage had been repaid, so there were no debts outstanding. There was no defaults or judgements listed, and some lenders like Bluestone don't credit check any past debts.
-This was a Prime lending loan with Bluestone.
-She had been renting, so her last 6 months tenancy ledger was provided for character to repay. No statements or history was needed on the above closed facilities.
-She did not pay LMI or risk fees.

Want to talk through your scenario?

www.firsthomeguaranteescheme.com.au

Matthew Stack - Finance Broker - 0423 237 242
#creditscore