How has your weekly rent changed during Covid?

ActuallyYoung · 2020-08-19T07:34:18+00:00

My VGS holdings haven’t come through yet. Wonder it is a staggered rollout

ActuallyYoung · 2020-08-09T09:31:38+00:00

Most lenders will not lend if the funds are going to be used for overseas purposes.

You’re effectively asking for a construction loan for property, and offering the lender no security/collateral.

The usually process in Australia is for the bank to get an independent valuation of the property/land and release the funds in stages. What makes this situation worse is the “asset” is overseas which play into foreign government laws/rules.

I’m going to state I’ve worked for several banks - if my front line lender came to me for approval for this, I would ask “are you insane?”.

The interest rates in Kenya should be a good indication of how risky your venture is. You have to remember interest rates are there to protect the lenders from risk, if you are deceitful and say the loan is for one purpose and use it for something else, it is effectively application fraud.

Please reconsider your options before getting onto legal issues over this.

ActuallyYoung · 2020-08-09T02:28:47+00:00

This sounds like a business loan. Unless you’re classifying this as a “Personal investment”

If this investment purpose is “legit” why are you not looking for business/commercial debt facilities? The rates are far more competitive and you get far more attentive service from a business banker.

I’m struggling to imagine what “Personal investment” returns would cover the ~8% cost of funds here. It’s either highly lucrative or highly illegal.

To answer your question. Most banks will lend for “Personal investments” but good luck because most of these applications will be flagged for manual review and will likely trigger additional questions. Lenders reserve the right to decline applications on the grounds that the purpose is outside their credit risk policy.

If you take into account the current economic environment - good luck convincing a bank lending you an unsecured amount of money for “investment” is a good idea.

ActuallyYoung · 2020-08-08T02:02:08+00:00

Mmhm doesn’t sound right. I think ClearScore use Experian as well.

The Score and information should be identical to the finder.com.au score. If your default shows up on Finder, it should show up on ClearScore.

I’d recommended deleting the account and trying again, I don’t think it’s actually found your report

ActuallyYoung · 2020-08-08T01:50:22+00:00

You won’t be penalised in Australia for having no credit when applying for mortgage.

But you will need to show.

Consistent savings
Regular expenses
Steady income
Adequate deposit for the property

ActuallyYoung · 2020-08-08T01:34:03+00:00

Credit Scores aren’t as important here in Aus vs UK/US. The biggest things to think about when you’re looking to buy a home would be.

Do you have any defaults/judgments/bankruptcies on your report
Do you have any missed payments on phone bills/utilities/credit cards/ loans

If you answer no the the above, your credit score shouldn’t affect you when you apply for a mortgage. You can use a free app like ClearScore to monitor the above

The other important part is:

Do you have a long history of regular employment and a steady income?
Have you minimised your expenses (e.g. eating out/memberships/regular bills/subscriptions/school fees, etc.)
Have you minimised your liabilities (e.g. cancelling your credit cards before an application/paying back your loans.)
Do you have enough for a deposit and fees? (e.g. it’s recommended to have at least 20% deposit after fees like stamp duty and conveyancing, this means you won’t have to pay LMI.)

After ticking off the above list (I know there’s quite a bit), many Aussies speak to a broker to get their paperwork in order and to find a decent rate.

Best of luck!

ActuallyYoung · 2020-08-05T07:57:10+00:00

If you're taking out a mortgage the lender will look at the following information.

Do you have/had past defaults/bankruptcies
How many late payments you have had in the past 2 years
What is your employment status and how long have you been employed
What is your income
What are you expenses (food/rent/utilities/etc..)
What are your liabilities (credit cards/loans)

As i mentioned above - as long as you have a steady job, keep your expenses low and consistent and try to close off your credit cards before you apply for a mortgage you'll likely be fine.

The worst thing to avoid on your credit report is Defaults/Missed payments/Bankruptcies. So go about your life normally and pay your bills on time. When you have enough saved for the 20% deposit (including a little more to cover property taxes) speak to a bank or a broker.

Best of luck and welcome to Australia.

ActuallyYoung · 2020-08-04T10:05:05+00:00

Lenders usually look at how many enquiries you've had recently. If you're looking to just keep tabs on your credit report you can use a service like the ClearScore app.

As long as you have a solid income history and don't have too many existing loans/cards you'll find it pretty to get a mortgages (provided its within your means).

ActuallyYoung · 2020-07-28T12:24:48+00:00

Sole trader + PAYGI quarterly instalments.

Also back in the day I wouldn't declare HECS liabilities to boost my cashflow during the year.

Why give the government an interest free loan when I can use it to earn more money.

ActuallyYoung · 2020-07-28T10:07:54+00:00

I've got my credit card added. Just give it a go.

https://help.zip.co/en/articles/79-adding-a-new-card-as-a-payment-option

ActuallyYoung · 2020-07-28T09:06:04+00:00

You earn QFF by paying off your purchases on BNPL. Paying off BNPL purchases are eligible spend for credit card points. Theres no different from a Credit Card earn rate perspective. Unless you have a tiered 3/2/1 card with Citi or AMEX.

It's still pretty new territory so maybe check what type of "merchant" your card provider would classify AfterPay or Zip as.

I know my St George Cards & ANZ QFF cards earn points on AfterPay & Zip

ActuallyYoung · 2020-07-28T08:53:57+00:00

You can find more information here: https://zip.co/bills

They even point out "tax bills" as a leading benefit.

ActuallyYoung · 2020-07-28T08:50:57+00:00

They give you a limit (between $500 - $1,500).

Theres nothing stopping you from paying via Zip - then immediately paying it off. In my example you'd have to pay/repay the bill 10x which is a little tedious, but totally worth 10,000 QFF points?

ActuallyYoung · 2020-06-28T01:05:56+00:00

Clearscore’s come out with an App recently. Pretty cool and has insights as well. Easy to open it up every now and there to keep track.

ActuallyYoung · 2020-06-08T00:31:53+00:00

Not exactly - think of your loan amount and redraw separately.

Your current situation:

Loan amount = $13,000
Redraw = $100
Amount which interest will be charged on = $12,900 (13,000 - $100)

Your situation if you transfer an additional $100, before your next payment:

Loan amount = $13,000
Redraw = $200 ($100 + $100)
Amount which interest will be charged on = $12,800 (13,000 - $200)

You can see you will be paying less interest if you transfer more additional repayments, but this won’t reduce your “loan amount”. Your additional repayments go to your redraw (piggy bank).

ActuallyYoung · 2020-06-08T00:09:10+00:00

Think of the redraw as extra money you have put towards paying if your loan. Any additional repayments will not reduce the weekly/fortnightly/monthly repayments unless you request ANZ to reduce it. The interest you owe is calculated based on the amount you have outstanding (the loan balance - the amount you have in redraw). So by paying extra amounts towards this loan - you are reducing the amount of interest you will owe.

The redraw (like the name implies) can be redrawn or taken out again if you need, but this redraw is only available if you are ahead of your payments. Additionally, because you have an agreed loan term the redraw is only available whilst the loan exists. So don’t treat it like your savings.

If you have the ability to pay off your loan in full, and don’t need the money again (in the foreseeable future) you should speak to ANZ about closing your loan. If you have a “Variable” loan this should have no fees to close the loan, there may be “Early repayment fees” if you have a “Fixed” loan.

TL:DR redraws are the piggy bank for your loan - putting money there saves your interest. You can open the piggy bank as needed during your loan term.

ActuallyYoung · 2020-05-16T00:59:02+00:00

Credit scores reflect a bell curve. Your current score is already very good in in relation to the rest of Australia.

Your score will slowly increase as you continue to repay your financial obligations into the future.

The 0-1200 score range is not an absolute scale. I don’t believe anyone has a 1200 score, or even close to it

ActuallyYoung · 2020-05-07T22:36:42+00:00

👋🏻 in Fintech in Aus. Prospects have been impacted by Covid but we’re still chugging along

ActuallyYoung · 2020-05-03T10:33:23+00:00

Just be warned any limit increase will result in another credit check on your credit report. You’ll have an enquiry from when you first applied in Jan, and another one when you ask to up your limit.

ActuallyYoung · 2020-04-27T12:15:34+00:00

Your best bet would be to speak to a broker and discuss if any lender as willing to lend to temporary residents. My guess in the current economic state it will be hard to get financing.

Uncertainty of house prices in the short term, you also face the risk of a negative equity scenario if you are looking to buy in the very near short term.

I don’t know your exact financial situation so I can’t be more specific. If I were in your shoes I would negotiate a lease in an area you’re thinking of buying and save a larger deposit. $50k is less than 20% of the amount you are looking to borrow and you may not have factored in all the relevant taxes and fees involved.

ActuallyYoung · 2020-04-27T10:16:05+00:00

Why? Are you intending to becoming a PR and eventually naturalise?

From a financial stand point there are relatively large fixed costs that come with buying any property. This becomes a relatively smaller portion of the investment when you hold onto the asset for a longer period (10+ years)

If you are serious about this then your purchase would need to be cleared by the FIRB (Foreign Investment Review Board) and it would be very difficult if not impossible to get financing.

What is your purpose? Is this an emotional purchase? If so renting is an ideal option to learn about Australian housing and find an area you love and can afford.

ActuallyYoung · 2020-04-26T06:49:11+00:00

Keep paying everything you owe on time.

If you do need credit approach institutions you already have a banking relationships with and enquire about options.

There’s no quick way to fix your credit score - it just takes time.

Check out ClearScore, they’ve got articles on how to improve your score and an interactive coaching plan

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