Forty may be the new 30 but when it comes to getting a home loan, lenders will look at you as if you’re 65. Under responsible lending guidelines in the new National Consumer Credit Protection Act (NCCP), lenders will have to verify a customer’s financial situation, assess their capacity to repay without substantial hardship, and not offer credit products that are unsuitable.
While there’s nothing new about lenders checking a borrower’s income, expenses, employment, assets and liabilities, it’s the “without substantial hardship” part that’s hurting. If you’re already 40 and you can’t prove to your lender how you intend to repay a 30-year term mortgage, your lender will say no.
Offering to sell your home as an exit strategy isn’t good enough – the code presumes this "loan will cause substantial hardship and is therefore not a suitable loan". Lenders will want to know what other income streams you have to help meet your repayments if you hit retirement and still have a home loan.
Source: http://finance.ninemsn.com.au/article.aspx?id=8228067
Mortgage brokers are the perfect remedy for such circumstances. They will help the potential lendee to look favourable to the lender. Add to that, their vigourous negotiating skills to loan application approved.
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