What are my options as an ex-bankrupt?
Bankruptcy is one of the most serious financial and social events that can occur to an individual or family. If this has happened to you then you know better than anyone that the circumstances in each case are very unique and often a single catastrophic event is the cause. You do have options but your options are different now.
What is the most important thing to do?
The most important thing to do now is make sure that the events that lead to you having poor credit never happen again. You broker is bound by legislation that requires that the credit you apply for is not unsuitable in the circumstances. This will require a discussion between your broker and yourself about your goals.
· Is your employment secure
· Are your existing liabilities manageable
· What effect will the proposed credit have on your household budget
· Do you have contingencies in place for illness
· Do you have sufficient insurance cover for things such as illness and redundancy
How much can you borrow?
You can borrow up to 90% LVR or loan to valuation ratio. However, you will need more than a 10% deposit to complete the purchase. The lender will need to see “funds to complete” which are sums of money to cover other costs such as stamp duty, legal fees and the lenders LMI or risk fee. The loan amount will be capped at 90% so the risk fee or lmi needs to be accounted for.
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The cost of money or the interest rate you pay will be higher. If you live in Tuggerah talk to Don Nicolussi on 1300 553 907 and he can meet with you and confidentially go through things with you. Once you have had your meeting he will be able to give you a very good indication on the spot what your fees and rates may be and in 24 hours a formal quote will be prepared for you. This will help you decide your next step.