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david63

mortgage with bad credit?

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8 hours ago, david63 said:

How can I get a mortgage with bad credit?

If you have a large deposit, say 20% and lots of equity in the new property it could be possible.

The lender would need to be convinced you can afford the loan. Also that there is enough equity in the home that they would be sure they could get their money if they had to reposes

If your bad credit is in the UK and you are borrowing for the first time in Australia it might be easier as the bank may not find out about your credit history..

 


Buy a man eat fish. The Day, Teach Man, to lifetime.      - Joe Biden.

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Although would you really want a large loan with inflated housing prices about to fall?

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The other thing is you can wait. Credit defaults stay on your credit report for 5 years. So a default isn't a life sentence.

You might just have to wait until your credit report is clean.


Buy a man eat fish. The Day, Teach Man, to lifetime.      - Joe Biden.

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4 hours ago, Blue Flu said:

Although would you really want a large loan with inflated housing prices about to fall?

We will see, people say this every year and so far every year since 2008 they have been wrong

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19 hours ago, Ausvisitor said:

We will see, people say this every year and so far every year since 2008 they have been wrong

Not really prices dropped a few years ago, in Perth at any rate. Interest rates dropped to a rate few would have expected. I don't expect the rise to be substantial, but it won't take much to tip the apple cart. Too many over extended. 2008 was the year the banks experienced severe difficulty. A very big part of the mess that followed. Rates wouldn't rise before due to no inflation. But as you say, we'll see. 

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Posted (edited)
21 hours ago, Ausvisitor said:

We will see, people say this every year and so far every year since 2008 they have been wrong

Actually prices came back a bit in Sydney in 3rd Qtr of 2018 (approx 14% drop from June 2017 peek to March 2019).  I bought in December 2018 when the Royal commission was on having sold my own place in March,  nearly every house viewing we were either the only party or one of 2-3 parties max and the other 2 were probably tire kickers.  Some of the houses I viewed were still on the market in June 2019,  some were withdrawn and put on the market later in 2019. Back in Dec 2017 you probably would have had 20 parties come through on open day.

I got a bargain vendor was looking $1.2m she got $1.03m it was the only offer and she already had bought her retirement house up the coast so she had no other choice.  Same house is now $1.8-$2m lol

Edited by Joebloggs

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CEO quote of the day: Westpac boss Peter King says the bank can already see the housing market slowing down. “Demand for housing has already shown some signs of easing and rising interest rates are expected to contribute to a moderation in house prices next year,” he said as the company reported interim results today.
“As the economy moves into the rising rate cycle, it’s important to remember that rates are moving from a very low base and we already assess loan applications on higher rates, consistent with regulatory requirements.”

They are predicting a 10-15% decrease in the next 12-24 months, whilst interest rates will rise to counter inflation. However, some reports suggest it's Sydney and Melbourne which will take a hit. 

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In actual fact they are clueless as to how far the housing market will fall. Too many things going on behind the scenes as well. Will government ride to the rescue of the market again? Has it the capacity to? I suspect if falling prices can be kept at under 15% they will consider that a very good outcome. 

My question would be who would buy a property now ? 

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48 minutes ago, CaptainR said:

CEO quote of the day: Westpac boss Peter King says the bank can already see the housing market slowing down. “Demand for housing has already shown some signs of easing and rising interest rates are expected to contribute to a moderation in house prices next year,” he said as the company reported interim results today.
“As the economy moves into the rising rate cycle, it’s important to remember that rates are moving from a very low base and we already assess loan applications on higher rates, consistent with regulatory requirements.”

They are predicting a 10-15% decrease in the next 12-24 months, whilst interest rates will rise to counter inflation. However, some reports suggest it's Sydney and Melbourne which will take a hit. 

Without doubt , those boys eyes are firmly on the ball. (even if not a crystal one) Great to be reassured our banksters have it all under control.

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