What are Mortgage Arrears and Late Payments?
Mortgage Arrears occurs when you do not make the required monthly repayments on your existing Home Loan. There are typically two types of Mortgage Arrears, Late Payments and genuine Mortgage Arrears. Late Payments occur when you miss a loan repayment but make it up prior to the next one being due. These can occur for any reason but are most likely due to a receiving your pay a couple of days after the repayment is due or not transferring funds into the correct account by the due date. These simple errors will normally see most lenders refuse to refinance your current loan. Genuine Mortgage Arrears occurs when you have missed more than one repayment. These can arise when you have a change in life circumstance such as illness or loss of employment. They also may arise for other reasons, such as legal advice in a separation.
Can I still get a home loan with Mortgage Arrears or Late Payments?
Definitely! As long as you can prove a genuine reason for the Late Payment (ie you get paid 2 days later) or the Mortgage Arrears (ie you were advised by your solicitor not to pay it) then a Specialist Lender will consider these scenarios. You do need to also show that it won’t happen again but providing you can do that you could be able to borrow up to 95% of the purchase price (for purchases) or up to 85% of the valuation of your property (for refinances).
Mortgage Arrears Home Loan Summary
|Max LVR (Purchases)||95%|
|Max LVR (Refinances)||85%|
|Max Loan Size||$2,500,000 (up to 65% LVR)|
|Non Genuine Savings||Yes|
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