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Finance for Difficult Circumstances

 

Finance for Difficult Circumstances – Pensioners, Single Parents, Recent Migrants, Visa Holders and Students

If your circumstances are not typical of most borrowers it doesn’t necessarily mean that you have no hope of getting the finance that you need. The process may be more challenging and you’ll probably need to enlist the help of an expert to help you navigate your way through to an approval but it’s certainly not impossible.

LoanPlace.com.au is here to help you make sense of it all by providing you with information resources and connecting you with experienced professionals who will search their lenders to find the latest deals so that you get 3 Free Quotes to evaluate and compare.

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Pensioners

Most lenders review these types of applications on a case by case basis. A number of lenders would regard a disability pension along with other forms of benefits to be a valid form of income. However, it depends on the types and amounts that you receive and how much you rely on these benefits for your overall income. If you have a supplementary source of income that will certainly help to strengthen your application.

The more information that you can provide to the lender about your Centrelink income the better. Check your Centrelink documents to see what type of benefits you are currently receiving.

Different types of Centrelink and other benefits that can be accepted by some lenders:

  • Age Pension – Lenders may require you to have a supplementary income.
  • Disability Pension – Lenders may require you to have a supplementary income.
  • Veterans and Widows Pension – Lenders may require you to have a supplementary income.
  • Overseas Pensions – If your pension comes from certain countries it can be considered as an acceptable regular income.
  • Carer’s Allowance – Lenders may require you to have a supplementary income.
  • Family Tax Benefits – Lenders may require you to have a supplementary income but the age of your children will be taken into consideration.
  • Foster Care Allowances – Lenders may require you to have a supplementary income.
  • Child Support – This income can be accepted by some lenders but you may be required to provide a copy of the Family Law Court Order, a letter from the Child Support Agency (CSA) and proof that you are receiving the income.

 

Single Parents

It can be difficult for single parents to access finance even for the purpose of buying what can be essential items such as cars. Having a car is a necessity for many people rather than a luxury and there are options available through a range of lenders.

As with pensioners Centrelink benefits can be accepted for single parent applications but supplementary income will normally be required to strengthen your application.

Using a knowledgeable loan expert who has experience of situations like yours can help you find a flexible lender that may be able to assist you. 

  

Recent Migrants

If you’re new to Australia and have permanent residency then your credit history is going to be similar to that of a young Aussie who’s lived here all their life. However, you probably have a few advantages over the young guys and you should make sure to highlight these when applying for finance.

Using a professional loan expert can help to point you in the right direction of lenders who are more sympathetic to applicants who are new residents and are prepared to look a bit deeper when assessing your application.

Factors that can help your application:

Employment status – If you are employed in a full time permanent position then this is a real positive. Casual and contracted positions are becoming more and more common so if you are employed on a full time basis this is regarded as a positive by lenders. Also, if you’re employed in a professional category this will add extra strength to your application.

Income – If you can demonstrate through proof of income that you can comfortably afford the finance repayments then this is another positive.

Assets Having a strong asset position in Australia, whether it be cash at the bank or residential property, is another feel good factor for lenders.

Credit history – Providing statements from previous loan or credit accounts that you have conducted overseas may also help to demonstrate to potential lenders that you are a good risk.

 

Visa Holders

Visa holders are generally considered by lenders to be a higher risk because they may not have strong enough ties to keep them in Australia and they may leave behind unpaid debt. If you aren’t a permanent resident but are living in Australia on a temporary visa that gives you working rights such as a 457 visa then there are options available to you.

Things to consider:

Loan or lease term Lenders will impose a maximum loan term that is 1 month less than the time remaining on your visa. For example if you applied for finance and you had 31 months remaining on your visa then your maximum repayment term would be 30 months.

Deposit – Lenders will often require a deposit from you. Applying a deposit so that you are not borrowing the full value of the asset is often regarded as a sign of commitment by a lender. If you were to put in a substantial deposit on a secured finance facility it gives the lender greater confidence as it would seem unlikely that you would miss repayments and risk having the asset repossessed and potentially losing the cash that you put in originally.

Income – If you can demonstrate through proof of income that you can comfortably afford the finance repayments then this is a positive factor.

Assets Having a strong asset position in Australia, whether it be cash at the bank or residential property, is another feel good factor for lenders.

Credit history – Providing statements from previous loan or credit accounts that you have conducted overseas may also help to demonstrate to potential lenders that you are a good risk.

Profession – Your occupation type may also have a bearing on lenders. If your position is regarded as professional and the lender considers that you may have potential for long term residence in Australia this may also add weight to your application.

Using a qualified loan expert who has good knowledge of different lenders policies on visa holders can help to get you the finance that you are looking for.

 

Students

To be eligible for finance you need to be at least 18 years old. This is a non-negotiable. You won’t be able to get finance in your own name if you are under 18.

Some parents may take out a loan on behalf of their kids but generally lenders want to see the user of the asset involved in the finance agreement. In addition young borrowers who are over 18 may also face some challenges. Lenders are often wary of younger borrowers as their general lack of stability makes them a higher risk.

Things to consider:

Guarantor or co-borrower You may have to consider a guarantor (mum or dad) or even a co-borrower to help strengthen your application.

Potential low expenses One potential positive in your favour is that if you are a student living at home with your parents you are likely to have minimal outgoings. The chances are that you are boarding for free and therefore you are spared from what is most people’s major outgoing i.e. rent or mortgage repayments.

Income You will still have to demonstrate that you earn sufficient income to be able to meet the repayments and cover your other living expenses.

It’s certainly not impossible to get your finance organised but speaking with a specialist loan expert who knows which lenders may be able to assist someone in your circumstances is your best bet.

LoanPlace.com.au

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Whether you’re full time employed, part-time, casual, self-employed, retired or operating a small business, experienced professionals will help you find the right solution. Even If you’re on a working visa, a recent migrant or had credit problems in the past you will be matched with a specialist loan expert who can assist you.

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