Stay up to date with what’s happened in markets and the Australian economy over the past month.

October was a volatile month on the global stock markets and in Australia. The local sharemarket finished October down 3.8 per cent, representing a third straight month of losses.

Investor sentiment reflected heightened anxiety regarding inflationary pressures and uncertainty over rate rises, mixed economic data and concerns about the Israel-Hamas conflict.

Investors are continuing to keep a close eye on oil price movements over fears of an escalation of conflict in the Middle East.

Click here for our November update video.

Please get in touch on 03 9723 0522 if you’d like assistance with your personal financial situation.

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

Telephone : 03 9723 0522

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

Telephone : 03 9723 0522

Integrity One Facebook

This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

It can be difficult to think about a property purchase if you don’t meet all the criteria for a loan. Perhaps you work for yourself, have recently moved jobs, taken time out of the workforce to raise a family, or your credit history isn’t squeaky clean.

Rest assured that there are still loan options to suit your circumstances, which a broker is well positioned to help you access. Here is the rundown on some options you might not have considered.

Non-conforming loans

Non-conforming loans are suited to people whose situations aren’t clear cut and therefore are likely to face barriers when applying for traditional loans. They provide an opportunity for people with irregular incomes – such as freelancers, those at the end of their careers or who are returning to the workforce – to access financing.

Low documentation loan

One type of a non-conforming loan is known as a low documentation (low doc) loan. These are geared towards people who are self-employed – who have an income and assets, but who may not have all the documents usually required for a loan (such as years of tax returns and income statements).

Instead, a self-verification process is in place, where you sign a declaration stating your earnings. As the name low doc suggests, the reduced documentation needed for these type of loans enables borrowers who wouldn’t usually be able to provide the required information to access a loan.

It’s a misconception with this type of loan that you don’t have to provide any documents, however. As well as submitting an income declaration form, you will likely also need to provide your bank statements and a letter from your accountant that confirms your financial standing. You may also be asked for your ABN, a BAS statement and GST registration details, if applicable.

For those who are self-employed, keep in mind you may still be eligible for a traditional loan. While low doc loans were initially designed for small business owners and self-employed, if you have the necessary financials and tax returns available for assessment you could still be successful in a full doc loan application. We can help guide you and advise the best loan for your circumstances.

Signs you may not be a ‘perfect match’ for some of the lenders:

• You have a solid income, but only have a small deposit
• Your work means you regularly change jobs. This can imply you don’t have job stability, however for some it could just be the nature of your particular industry
• You need to consolidate a few other debts such as personal loans, credit cards or business debt
• You don’t have a perfect credit history. This may be that you have missed loan/ bill payments in the past or have previously declared bankruptcy
• You have recently started a business or a new job
• You are self-employed

Bad credit loans

It’s not the most appealing name, but this type of loan is geared towards people who have difficulty qualifying for a loan due to their credit score. It can also be an option for people with little to no credit history, for example those who have never had a credit card.

If you have a credit score of lower than 700, traditionally a bank would consider you too high a financial risk to approve. This type of non-conforming loan can help you access funds.

Generally, bad credit loans only allow you to borrow a small amount of money, so you’re unlikely to be in a position to make a big purchase, such as property.

Things to keep in mind

It’s also worthwhile knowing that non-conforming loans (including low doc loans) often come with higher interest rates than traditional home loans – this is because they are deemed riskier for the lender with a higher risk you not being able to make the repayments. Therefore, they may have a risk fee attached to them and there might also be stricter loan terms, such as larger deposits required.

Unfortunately, you may not be able to borrow as much as you would ordinally be able to with a traditional loan, so re-approval is key to ensuring you’re aware of how much you are able to borrow before making a purchase.

Another factor to consider is that as non-conforming loans aren’t very common, you’re likely to be limited in terms of your choice of lender. Finally, even non-conventional loans aren’t guaranteed – not all applications are successful.

What you will need

There is a common misconception that you don’t require much documentation for these types of loans, which is not the case. While your circumstances may be more complex than a straightforward application, you will need to be able to show your income and demonstrate the capacity to make the repayments for your potential loan.

As with a traditional loan, you’ll be required to complete an application form and, generally speaking, at a minimum you will need to provide a copy of your ID, bank statements and proof of income.

Finding the right fit

Non-conforming loans can be beneficial but they’re not the right choice for everyone. Having the assistance of a broker can help you navigate the different loan options and find the best fit for your circumstances.

If you don’t tick all the boxes when it comes to applying for a home loan, we can guide you through the loan application process and can help find the right solution for your circumstances.

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

Telephone : 03 9723 0522

Integrity One Facebook

This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

Stay up to date with what’s happened in Australian markets over the past month.

Household wealth has grown for the third quarter in a row, rising by 2.6% in the June quarter, pushed up by rising house prices and increases in super balances.

Click here for our October update video.

Please get in touch on 03 9723 0522 if you’d like assistance with your personal financial situation.

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

Telephone : 03 9723 0522

Integrity One Facebook

This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

Buying a home takes time. Not so much the actual act of putting in an offer, having it accepted and waiting on settlement, which can take as long as the settlement period of 30 to 120 days. But the process that comes before all of that. The process of saving for, looking for, and buying your dream home.

Depending on what is happening in the market and where you are looking, it generally takes an average of nine months to locate a home to buy.

If you throw in the time it takes to come up with a deposit, your timeframe is a lot longer – often stretching out to many years. Even over a decade for some. That means it can be hard to keep the momentum going. Let’s look at some ways to manage what can at times feel like a never-ending journey.

Have some room in your budget for fun

If you’ve been saving for a deposit for a while, you might be feeling like you’ve been frugal forever! It takes a lot of discipline to come up with a decent deposit and there is always that little voice in your head thinking ‘if I only had a little more to spend’ that spurs you on to save even more.

While it’s important to stay on target with your savings it’s equally important when you are in for the long haul to have a little wriggle room to enjoy yourself and have some allowance for a planned splurge now and then.

Know what you are looking for

It can be overwhelming with the amount of stock on the market, and if you feel your life revolves around going to open for inspections you might need to narrow the field a little.

While it’s useful to attend auctions and opens to get a feel for the market and understand what is a realistic price rather than rely on price guides that can be underquoted, it’s frustrating spending time looking at unsuitable properties. They key is to narrow the field, so think about things like where you want to buy and the size, age and condition of the property.

Also consider what you are prepared to compromise on. A neighbouring suburb may offer better buying power than the suburb you have set your sights on, or you may wish to consider a slightly smaller or older property.

Equally there are some things that might be non-negotiable for you. You might want something built in the last decade and be prepared to look at smaller properties to get that or you want an inner-city pad to be close to work and are happy to consider older ‘renovator’s delights’ to get the location you are after.

Hold out for the right property

While it’s important to be flexible and distinguish between your ‘must haves’ and ‘nice to haves’, resist the temptation to buy a place that’s not quite right or exceed your budget to get the perfect property. It’s tempting to buy the next house you see so you can put all this stress and pressure behind you. However, you are likely to make multiple offers and be unsuccessful numerous times before you eventually succeed.

Remember that real estate agents are working for the vendor and if the terms are not to your liking or you are being pressured to make an offer that exceeds your budget or within an unreasonable timeframe, it’s OK to respond with a firm ‘no’. It can be a good idea to cultivate relationships with agents and let them know what you are after though, as they can do some of the legwork for you.

Take a break if you need to – it’s not a race and the odd weekend off might be just what you need.

Make sure you are ready when you find the right one

Finally, make sure you have your ducks in a row. Your most important duck – even before making a verbal offer – is knowing what you can borrow and having a pre-approval in place, and we can help with that. You’ll also need to think about conveyancing and building and pest inspections.

It can seem like a long journey, but you will get there! We are here to help you every step of the way.