Tag: mortgage

Banks Check Facebook To Stamp Out Liar Loans Catching Out Innocent Home Buyers In The Process

[fusion_builder_container hundred_percent=”no” hundred_percent_height=”no” hundred_percent_height_scroll=”no” hundred_percent_height_center_content=”yes” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” status=”published” publish_date=”” class=”” id=”” link_color=”” link_hover_color=”” border_color=”” border_style=”solid” margin_top=”” margin_bottom=”” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” gradient_start_color=”” gradient_end_color=”” gradient_start_position=”0″ gradient_end_position=”100″ gradient_type=”linear” radial_direction=”center center” linear_angle=”180″ background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ background_blend_mode=”none” video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” video_preview_image=”” filter_hue=”0″ filter_saturation=”100″ filter_brightness=”100″ filter_contrast=”100″ filter_invert=”0″ filter_sepia=”0″ filter_opacity=”100″ filter_blur=”0″ filter_hue_hover=”0″ filter_saturation_hover=”100″ filter_brightness_hover=”100″ filter_contrast_hover=”100″ filter_invert_hover=”0″ filter_sepia_hover=”0″ filter_opacity_hover=”100″ filter_blur_hover=”0″ type=”flex”][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ spacing=”” center_content=”no” link=”” target=”_self” min_height=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” hover_type=”none” border_color=”” border_style=”solid” border_position=”all” border_radius=”” box_shadow=”no” dimension_box_shadow=”” box_shadow_blur=”0″ box_shadow_spread=”0″ box_shadow_color=”” box_shadow_style=”” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”” margin_bottom=”” background_type=”single” gradient_start_color=”” gradient_end_color=”” gradient_start_position=”0″ gradient_end_position=”100″ gradient_type=”linear” radial_direction=”center center” linear_angle=”180″ background_color=”” background_image=”” background_image_id=”” background_position=”left top” background_repeat=”no-repeat” background_blend_mode=”none” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=”” filter_type=”regular” filter_hue=”0″ filter_saturation=”100″ filter_brightness=”100″ filter_contrast=”100″ filter_invert=”0″ filter_sepia=”0″ filter_opacity=”100″ filter_blur=”0″ filter_hue_hover=”0″ filter_saturation_hover=”100″ filter_brightness_hover=”100″ filter_contrast_hover=”100″ filter_invert_hover=”0″ filter_sepia_hover=”0″ filter_opacity_hover=”100″ filter_blur_hover=”0″ last=”true” border_sizes_top=”0″ border_sizes_bottom=”0″ border_sizes_left=”0″ border_sizes_right=”0″ first=”true” type=”1_1″][fusion_imageframe image_id=”17306|full” max_width=”” style_type=”” blur=”” stylecolor=”” hover_type=”none” bordersize=”” bordercolor=”” borderradius=”” align=”none” lightbox=”no” gallery_id=”” lightbox_image=”” lightbox_image_id=”” alt=”Lady on the phone looking frustrated at her loan being rejected | MyCRA Lawyers – 1300 667 218″ link=”” linktarget=”_self” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=”” filter_hue=”0″ filter_saturation=”100″ filter_brightness=”100″ filter_contrast=”100″ filter_invert=”0″ filter_sepia=”0″ filter_opacity=”100″ filter_blur=”0″ filter_hue_hover=”0″ filter_saturation_hover=”100″ filter_brightness_hover=”100″ filter_contrast_hover=”100″ filter_invert_hover=”0″ filter_sepia_hover=”0″ filter_opacity_hover=”100″ filter_blur_hover=”0″]https://mycralawyers.com.au/wp-content/uploads/2020/02/20071002-Lady-on-the-phone-looking-frustrated-iStock_000003795262Large-GDOE-01-K.jpg[/fusion_imageframe][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” content_alignment_medium=”” content_alignment_small=”” content_alignment=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” class=”” id=”” font_size=”” fusion_font_family_text_font=”” fusion_font_variant_text_font=”” line_height=”” letter_spacing=”” text_color=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Banks Check Facebook To Stamp Out Liar Loans Catching Out Innocent Home Buyers In The Process

[/fusion_text][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” content_alignment_medium=”” content_alignment_small=”” content_alignment=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” class=”” id=”” font_size=”” fusion_font_family_text_font=”” fusion_font_variant_text_font=”” line_height=”” letter_spacing=”” text_color=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Liar Loans have been written about before, but did you know Banks are now trolling your Facebook and other Social Media spying on you without your consent?

This release highlights how a harmless joke on Facebook cost a young lady her chance at home-ownership – and it could happen to you too…

[/fusion_text][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

They were dubbed liar loans, where loan applications inflated earnings and assets and underestimated debts and liabilities, for a large part, brokers copped the blame, but just as many borrowers fudged their figures too.

A UBS study completed last year estimated up to a third of investment loans may have had less than honest declarations in the applications, this was despite the Royal Commission into Banking.

But it seems now banks have wised up that not all loan applicants were being completely honest and lenders are going above and beyond to check you are being truthful on your loan application, according to leading consumer and financial law firm MyCRA Lawyers.

“It’s a case of the banks are sick of being blamed for everything that is wrong in the lending world, so they are now going to the next level of due diligence. Banks are so strict in following procedure, they are catching out people who didn’t even realise they had lied,” MyCRA Lawyers CEO Graham Doessel said.

Mortgage broker Wendy De Graaf says she recently had a client rejected for a loan after the lender checked the Facebook status of her flatmate that had, as a joke, put they were in a relationship together.

“My client is genuinely single but her friend had on their Facebook status that they were partners and the bank saw this information and rejected the loan because it didn’t match what was on her application.

“I was shocked when they told me the reason for the loan rejection, it’s meant my client has missed out on buying her first home, Ms DeGraaf said.

“What’s even crazier is my client is a lesbian and her flatmate is male, but he did gift her some funds towards her deposit which is why the bank has looked at his social media as part of their investigation into approving the loan.

“There may be a lot more people being rejected because of what is on their social media and they don’t know it, the only reason I found out is because I had known the business development manager at the bank for so long and they told me about the social media status issue,” Ms De Graaf said.

Mr Doessel said your bank statements tell a story about you too, and if you don’t estimate your expenses correctly and the bank sees a different story in your expenditure, then you should expect to get rejected.

“There have even been stories where, as a joke, people transfer money to a friend and describe the transaction as a ‘sexual service’ even though it was their half of a dinner bill and the bank has seen the transaction and viewed it poorly when it came to approving a loan,” Mr Doessel said.

“Excessive use of food delivery services like Uber Eats, take away restaurants and online gambling will go against most people who apply for a loan.

“While the Royal Commission may have seemed like a free for all kick at the bank, in reality, a lot of it reflected poorly on borrowers too. Now banks not only are cracking down on their own behaviour but also customers which means it’s getting tougher for all of us to get finance,” he said.

So you can make sure you’re honest on your finance application, check you have clean credit by starting at www.FreeCreditRating.com.au – it’s free and knowing your data in advance could save you thousands in additional interest. If you get stuck, MyCRA Lawyers also offers a free Credit File Analysis and Explanation Service to help you make sense of your credit reports.

[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

10/09/2020
What Happens If You Lie On Your Home Loan Application? What could happen if you lie on your application?

[fusion_builder_container hundred_percent=”no” hundred_percent_height=”no” hundred_percent_height_scroll=”no” hundred_percent_height_center_content=”yes” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” status=”published” publish_date=”” class=”” id=”” link_color=”” link_hover_color=”” border_color=”” border_style=”solid” margin_top=”” margin_bottom=”” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” gradient_start_color=”” gradient_end_color=”” gradient_start_position=”0″ gradient_end_position=”100″ gradient_type=”linear” radial_direction=”center center” linear_angle=”180″ background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ background_blend_mode=”none” video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” video_preview_image=”” filter_hue=”0″ filter_saturation=”100″ filter_brightness=”100″ filter_contrast=”100″ filter_invert=”0″ filter_sepia=”0″ filter_opacity=”100″ filter_blur=”0″ filter_hue_hover=”0″ filter_saturation_hover=”100″ filter_brightness_hover=”100″ filter_contrast_hover=”100″ filter_invert_hover=”0″ filter_sepia_hover=”0″ filter_opacity_hover=”100″ filter_blur_hover=”0″ type=”flex”][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ spacing=”” center_content=”no” link=”” target=”_self” min_height=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” hover_type=”none” border_color=”” border_style=”solid” border_position=”all” border_radius=”” box_shadow=”no” dimension_box_shadow=”” box_shadow_blur=”0″ box_shadow_spread=”0″ box_shadow_color=”” box_shadow_style=”” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”” margin_bottom=”” background_type=”single” gradient_start_color=”” gradient_end_color=”” gradient_start_position=”0″ gradient_end_position=”100″ gradient_type=”linear” radial_direction=”center center” linear_angle=”180″ background_color=”” background_image=”” background_image_id=”” background_position=”left top” background_repeat=”no-repeat” background_blend_mode=”none” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=”” filter_type=”regular” filter_hue=”0″ filter_saturation=”100″ filter_brightness=”100″ filter_contrast=”100″ filter_invert=”0″ filter_sepia=”0″ filter_opacity=”100″ filter_blur=”0″ filter_hue_hover=”0″ filter_saturation_hover=”100″ filter_brightness_hover=”100″ filter_contrast_hover=”100″ filter_invert_hover=”0″ filter_sepia_hover=”0″ filter_opacity_hover=”100″ filter_blur_hover=”0″ last=”true” border_sizes_top=”0″ border_sizes_bottom=”0″ border_sizes_left=”0″ border_sizes_right=”0″ first=”true” type=”1_1″][fusion_imageframe image_id=”14070|full” max_width=”” style_type=”” blur=”” stylecolor=”” hover_type=”none” bordersize=”” bordercolor=”” borderradius=”” align=”center” lightbox=”no” gallery_id=”” lightbox_image=”” lightbox_image_id=”” alt=”” link=”” linktarget=”_self” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=”” filter_hue=”0″ filter_saturation=”100″ filter_brightness=”100″ filter_contrast=”100″ filter_invert=”0″ filter_sepia=”0″ filter_opacity=”100″ filter_blur=”0″ filter_hue_hover=”0″ filter_saturation_hover=”100″ filter_brightness_hover=”100″ filter_contrast_hover=”100″ filter_invert_hover=”0″ filter_sepia_hover=”0″ filter_opacity_hover=”100″ filter_blur_hover=”0″]https://mycralawyers.com.au/wp-content/uploads/2018/06/3.jpg[/fusion_imageframe][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” content_alignment_medium=”” content_alignment_small=”” content_alignment=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” class=”” id=”” font_size=”” fusion_font_family_text_font=”” fusion_font_variant_text_font=”” line_height=”” letter_spacing=”” text_color=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

What Happens If You Lie On Your Home Loan Application?

[/fusion_text][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” content_alignment_medium=”” content_alignment_small=”” content_alignment=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” class=”” id=”” font_size=”” fusion_font_family_text_font=”” fusion_font_variant_text_font=”” line_height=”” letter_spacing=”” text_color=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Studies reveal that 37% of home loan applicants lie on their homeloan application forms

With the real estate market hotting up homebuyers will need to make themselves look as good as they possibly can to get a loan in a very competitive and tightly regulated loan market.

Those suffering from FOMO, Fear Of Missing Out, may even be tempted to lie, inflating their earnings, assets and the like, but leading Australian consumer and financial law firm MyCRA Lawyers says don’t, because it’s potentially fraud and now your bank will find out.

Despite that it seems Australians, particularly those taking out investment loans, are fudging their applications.

A recent survey by investment bank UBS found up to 37 percent of applicants had lied on their loan applications.

The survey of 903 Australians found those who had bought more than one property in a single financial year were the most likely to lie.

About half of borrowers with two or more investment properties admitted to being less than truthful about their earnings and debts.

“Chances are to date most people will get away with lying, but that’s now changed, as banks are able to see your statements even from another bank when you give permission as part of your loan application.

“Since the Royal Commission into banking lenders, particularly the big 4, have the ability to share information about potential borrowers.

It means if you lie about your wage the bank will be able to cross check it against your statements.

If you lie about your debts they will be able to check with just about every lender in the country except your local loan shark,” Mr Doessel said.

So what if you have already lied, well you might be okay, provided you don’t fall behind in your repayments or don’t try to refinance. But beware!

“It is fraud, and fraud is a serious crime in Australia punishable by jail,” Mr Doessel said.

“Even if you don’t get a ten year stretch, being convicted of a fraud offence is a real pain in the backside.

You might recall the last time you applied for insurance they asked if you’d been convicted of fraud, well now you will have to say yes, not only is it embarrassing, it means you won’t get insurance or at best have to pay a much higher premium,” he said.

“For most people the easiest way to boost your chances of being approved for a home loan or any loan for that matter is to have a deposit and a good credit history.

“A blemished credit file these days is behind more people to being rejected for a loan than almost any another cause.

“It is something easy to keep tabs on by annually requesting a copy of your credit file from the three credit reporting bodies in Australia, you can find links to these at https://www.FreeCreditRating.com.au, and if you find something we’re happy to take a look and point you in the right direction,” Mr Doessel said.

[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

10/09/2020
Why Women Could Be Locked Out Of Home Ownership Simply Because They Are Female
[fusion_builder_container hundred_percent=”no” hundred_percent_height=”no” hundred_percent_height_scroll=”no” hundred_percent_height_center_content=”yes” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” status=”published” publish_date=”” class=”” id=”” link_color=”” link_hover_color=”” border_color=”” border_style=”solid” margin_top=”” margin_bottom=”” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” gradient_start_color=”” gradient_end_color=”” gradient_start_position=”0″ gradient_end_position=”100″ gradient_type=”linear” radial_direction=”center center” linear_angle=”180″ background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ background_blend_mode=”none” video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” video_preview_image=”” filter_hue=”0″ filter_saturation=”100″ filter_brightness=”100″ filter_contrast=”100″ filter_invert=”0″ filter_sepia=”0″ filter_opacity=”100″ filter_blur=”0″ filter_hue_hover=”0″ filter_saturation_hover=”100″ filter_brightness_hover=”100″ filter_contrast_hover=”100″ filter_invert_hover=”0″ filter_sepia_hover=”0″ filter_opacity_hover=”100″ filter_blur_hover=”0″ type=”flex”][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ spacing=”” center_content=”no” link=”” target=”_self” min_height=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” hover_type=”none” border_color=”” border_style=”solid” border_position=”all” border_radius=”” box_shadow=”no” dimension_box_shadow=”” box_shadow_blur=”0″ box_shadow_spread=”0″ box_shadow_color=”” box_shadow_style=”” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”” margin_bottom=”” background_type=”single” gradient_start_color=”” gradient_end_color=”” gradient_start_position=”0″ gradient_end_position=”100″ gradient_type=”linear” radial_direction=”center center” linear_angle=”180″ background_color=”” background_image=”” background_image_id=”” background_position=”left top” background_repeat=”no-repeat” background_blend_mode=”none” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=”” filter_type=”regular” filter_hue=”0″ filter_saturation=”100″ filter_brightness=”100″ filter_contrast=”100″ filter_invert=”0″ filter_sepia=”0″ filter_opacity=”100″ filter_blur=”0″ filter_hue_hover=”0″ filter_saturation_hover=”100″ filter_brightness_hover=”100″ filter_contrast_hover=”100″ filter_invert_hover=”0″ filter_sepia_hover=”0″ filter_opacity_hover=”100″ filter_blur_hover=”0″ last=”true” border_sizes_top=”0″ border_sizes_bottom=”0″ border_sizes_left=”0″ border_sizes_right=”0″ type=”1_1″ first=”true”][fusion_imageframe image_id=”17307|full” max_width=”” style_type=”” blur=”” stylecolor=”” hover_type=”none” bordersize=”” bordercolor=”” borderradius=”” align=”none” lightbox=”no” gallery_id=”” lightbox_image=”” lightbox_image_id=”” alt=”” link=”” linktarget=”_self” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=”” filter_hue=”0″ filter_saturation=”100″ filter_brightness=”100″ filter_contrast=”100″ filter_invert=”0″ filter_sepia=”0″ filter_opacity=”100″ filter_blur=”0″ filter_hue_hover=”0″ filter_saturation_hover=”100″ filter_brightness_hover=”100″ filter_contrast_hover=”100″ filter_invert_hover=”0″ filter_sepia_hover=”0″ filter_opacity_hover=”100″ filter_blur_hover=”0″]https://mycralawyers.com.au/wp-content/uploads/2020/02/20071002-iStock_000003830772XLarge-GDOE-01-K.jpg[/fusion_imageframe][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” content_alignment_medium=”” content_alignment_small=”” content_alignment=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” class=”” id=”” font_size=”” fusion_font_family_text_font=”” fusion_font_variant_text_font=”” line_height=”” letter_spacing=”” text_color=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

It’s disgusting to think this could actually be true in 2020, worse still that’s it’s hidden in plain sight. This release lifts the lid on financial gender inequality and

[/fusion_text][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” content_alignment_medium=”” content_alignment_small=”” content_alignment=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” class=”” id=”” font_size=”” fusion_font_family_text_font=”” fusion_font_variant_text_font=”” line_height=”” letter_spacing=”” text_color=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Why Women Could Be Locked Out Of Home Ownership Simply Because They Are Female!

[/fusion_text][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””]

Are women being secretly discriminated against by credit reporting bodies?

Exactly how credit reporting bodies like Equifax, Illion and Experian come up with your credit score is somewhat of a mystery as each uses a slightly different formula to assess your creditworthiness.

We do know, however, that they do discriminate, in fact, that is their whole job, to discriminate.

To discriminate who is good with money and who isn’t, and who should get credit and who shouldn’t.

We assume (we say assume because it’s all a big secret), for example, you are discriminated against based on:
1. where you live,
2. on the job you have,
3. how long you’ve been in that job and of course
4. how good you’ve been at paying your debts in the past.
But do they discriminate based on gender?

Well leading Australian consumer and financial law firm MyCRA Lawyers says it’s highly likely they do.

MyCRA Lawyers CEO Graham Doessel says there is no shortage of evidence around the world that women are worse of financially than men, so it’s highly likely credit reporting bodies mark women down on their credit score simply because they are women.

A 2009 the Australian Human Rights Commission released a report ‘Accumulating poverty?

Women’s experiences of inequality over the lifecycle’ which puts a magnifying glass over a host causes to why women are worse off than men financially.

“The report looks at issues like:
1. the gender pay gap,
2. career progression,
3. maternity and parental leave,
4. gendered ageism, and
5. their effect on women’s financial position.
“All factors I am willing to bet, Credit Reporting Bodies would take into account when assessing a person’s creditworthiness, and could easily be grouped under the box male or female when ticked in your credit score calculation,” Mr Doessel said.

According to OECD figures, a host of statistics could be broadly attributed to women like their level of employment or unemployment and at what age they are likely to leave or re-enter the workforce.

“Problem is we don’t know for sure because Credit Reporting Bodies keep secret exactly what data they use, and what they give each factor when it comes to calculating a credit score.

“We believe it’s high time that gender was taken out of the equation, to ensure women have equal access to finance, after all, numbers don’t lie and your sex shouldn’t affect someone’s ability to repay a loan.

“I know many women who are far better with a budget than many men,” Mr Doessel said.

“It is quite possible Credit Reporting Bodies are in fact breaching anti-discrimination legislation but we just don’t know because they aren’t transparent.

“How do you test this, well short of someone checking their credit score before changing genders as male then again after transitioning to female, its almost impossible.

“Why is this a problem? If women indeed have a tougher time getting credit, it may exclude them from a host of wealth-building opportunities like buying a home or getting small business loans.

“We believe it’s time they were made disclose how they calculate a person’s credit score and made remove gender from the calculation,” Mr Doessel said.

If you need to check your credit score now, go to www.FreeCreditRating.com.au today for instructions and free access links.

[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]
10/09/2020
Are you lying to yourself when it comes to credit?

In this week’s ‘Make Credit Work For You’ post, we look at the lies we tell ourselves which see us taking on too much credit, or see us run into trouble with our credit file. Those lies can end up leaving us unable to pay, and blacklisted from credit for years to come. What should you be honest with yourself about when it comes to borrowing money? This post is inspired by David Koch’s recent article ‘Money lies you need to stop telling yourself’ featured on news.com.au.

By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

According to Kochie, telling yourself financial lies is pointless. He says it’s time to toughen up and stop the lies, as these can cost us big time in the future.

So, what things can we lie to ourselves about, that could cost us our good credit rating down the track?

* As long as my job pays well, it’s OK if I hate it.

Kochie says staying in a job that you hate, even if it pays well, means you don’t have your heart in it, there will be no commitment, no passion and your boss will eventually latch on.

“Inevitably, you’ll be the first one to go in any redundancies and the one overlooked for any promotions,” he says.

So before you apply for credit, especially major credit like a home loan – it’s important to understand the long term commitment, and consider whether the career you’re in is going to fulfil you for at least several years to come. In the early years of a loan, your repayments will be at their highest and it will be essential to put your head down and pay off as much as possible.

Kochie says success comes easiest to those who love their job. So if you don’t – it might make sense to spend some time getting settled in a job you do love, before you apply for major credit.

However, if you are unhappy in your job and are currently paying off a mortgage or other significant loan – it’s important you are really smart about how you change careers. Consider your loan first and foremost before you make any drastic career changes. You don’t want to be caught out unemployed and unable to pay your loan.

* If I turn a blind eye, somehow my finances will work themselves out

Burying your head in the sand is never a solution to your financial issues. They only snowball. At this point in time in Australia, paying bills even one day late may directly impact your credit file, through licensed Creditors recording your repayment history information. Paying them later than 60 days will see you defaulted.

The government has made changes to credit laws in order to assist consumers in financial difficulty, but you need to put your hand up and own your financial problems, and you need to have a plan.

To begin with, stop lying to yourself about how much money you actually have. To get any help, or to help yourself, you first need to know exactly how much you have left at the end of the week – or even how much you are in the red.

If you know you can’t make your credit repayments, work out how much you can pay from what you have, and give this information to your Creditors to negotiate a financial hardship plan which may see your repayments reduced for a period of time. For more information on financial hardship variations, visit ASIC’s MoneySmart website.

If you are not in dire straits yet, don’t wait till you’re there to do something about it. Kochie recommends starting with a plan that involves either cutting back expenses or earning extra income to balance the books. Make a goal, make a plan and get yourself there.

* I should buy a home because that’s what grown-ups do

Despite the ethos that everyone in Australia has the right to own their own home, buying a home is not right for everyone. Kochie argues that for some, renting and investing your savings can be a better financial option.

For others, they may see more results being able to buy a home and focus on paying down the mortgage (creating equity) as their investment strategy.

And some people just won’t be able to meet the big financial commitment that a home loan entails, even if they want to, and even if on paper, they look like they could. If this is you, consider that for now, you may be better off learning more about how to make credit work for you, to gain more money skills and adopt a different attitude towards money and credit before you take the plunge.

* If I dip into my savings now I can always make up for it later

Kochie advises it’s way more productive to leave your savings untouched and earn extra to pay for the item or experience. If you are saving for a home or business loan, then more savings means cheaper credit.

* If I get approved for a loan or credit limit increase, I can afford it

Kochie says this is probably the most dangerous of all lies. “Forget what the bank is offering in terms of increased credit card limits or loan amounts, only you really know what you can afford,” he says.

Remember, the bank doesn’t have to pay your loan back – you do.

Some other lies you can tell yourself about credit which you shouldn’t:

* No news is good news when it comes to bills.

No its not! If you think you should have received a bill and haven’t, the best thing you can do is chase it up. Nine times out of ten your Creditor thinks you should have received it, and you accrue days in arrears, meaning they may default you anyway whether you received the bill or not. This is especially important if you change addresses.

*If I love someone, money doesn’t matter.

Money still matters and when it comes to credit accounts, love may be blind but your Creditors are not. You need to keep your head in money matters when love is good and when love goes bad. Sometimes joint credit accounts can land you in hot water. Cover yourself and your credit file against the worst.

* Someone else will tell me if my credit file is not accurate.

No they won’t, it’s up to you to be proactive. There is an avenue for complaint if you think your credit file is inaccurate, but the responsibility for finding out whether everything is correct rests which the individual credit file holder. So it is really important that you do an annual credit check (which is free) through Australia’s credit reporting agencies. Don’t leave it until you’re applying for a home loan to find out you have defaults or other credit listings you don’t think should be there.

To find out more about credit file accuracy, visit our main site www.mycra.com.au or call a Credit Repair Advisor tollfree on 1300 667 218.

Image: Teerapun/ www.FreeDigitalPhotos.net

09/04/2013
Make a mortgage work for you: Taking a conservative approach to purchase price
In this week’s ‘Make Credit Work for You’ we take a look at the biggest form of credit many consumers are likely to take out – finance on a home. Whilst a home loan is a unique form of credit in that it will generally appreciate over time, there are ways it can be an unsafe form of credit. We look at how you can minimise the risk to you and your credit file when you purchase your first home.

By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repair and www.fixmybadcredit.com.au.

In Australian Broker Magazine article FHBs urged to take caution when signing on to a home loan last week, a financial comparison website warned first home buyers they should be looking carefully at purchase price following research showing many are taking on more debt despite the relative stagnation of the housing market.

Research by RateCity shows first home buyers are taking on more expensive mortgages on the back of steady growth in house prices over much of the past 15 years:

According to the site, the national average first home buyer mortgage size almost doubled in the past decade, to $297,100 in January 2013 and FHBs are taking on almost three-times more debt than they were 15 years ago.

If the average first home buyer loan size kept in line with inflation only over the past 15 years, RateCity estimates first time borrowers are taking on a further $133,869 (or 82%) above the inflation adjusted average loan size…

Michelle Hutchison, spokesperson for RateCity, says that while there are good opportunities to enter the home loan market this year, FHBs need to be cautious about taking on too much debt.

“Australia’s property market is looking positive for first home buyers with record low interest rates making home ownership more affordable and luring some buyers out of the woodwork. While prospective home buyers are starting to enter the property market, borrowers need to be careful about how much debt they can afford to take on.”

If we figure that most home buyers are now falling into the category of Gen Y, Ms Hutchison’s statement is a wise one. Recent reports from credit reporting agency Veda Advantage show that Gen Y has the lion’s share of bad credit at 60% of all defaults. The most important thing for you as a first home buyer to do is to decide on a purchase price that suits your needs now, and in the future.

We can ensure we don’t become part of those statistics and ensure the home is really affordable, by considering three things.

1. Is this mortgage going to still allow me to live?

Just scraping into a sky-high mortgage could be a detriment to your lifestyle and even your happiness. Do you have wiggle room between your repayments and your wages for savings or for lifestyle purchases? What if your income decreased slightly? Leaving a bit of room for emergencies and also just enjoying life can make all the difference and can mean the money you don’t use can go into extra repayments on your loan, and you can pay it off quicker. Having no room for incidentals will invariably mean if life throws a curve ball at you, you’ll be likely to end up in debt and with a default on your credit rating or worse – all because your purchase was too impulsive and just downright too much for you to handle.

2. Can repayments be made with only one income?

This is a big trap for couples – even if they don’t intend to have children in the near future. Accidents, sickness, break-ups and yes, children can put a strain on finances and can mean the mortgage is paid from only one income for a period of time. Can you cope with the mortgage if this happens?

3. How much equity do I have in the home?

This may seem like a trick question, as really first home buyers have very little equity when they first enter a mortgage – but the bigger the deposit in relation to your purchase price, the more equity you will have, and the more freedom you will have. Having equity will make changes such as refinancing easier, and if for any reason you need to sell the home, you will be less likely to be left with a debt.

When we think about equity, we can also consider future equity. To capitalise on equity it may be best to have a good think about the area you are buying in in relation to your purchase price. Is this area likely to grow much over the next 5-10 years? Is the type of property I am buying likely to be sought after in the area? Is it close to the median house price for the area? For instance, you might be better to buy an apartment in an inner city area which is going to see significant growth rather than a four bedroom home in an outer suburb which is surrounded by cheaper properties. Or on the flipside, you may be better to buy a modest home in a suburb surrounded by expensive properties rather than a penthouse apartment which is flagged on all sides by basic 2 bedroom rentals. Real estate has a general rule, buy the worst house in the best street – but of course – if you can’t afford to do renovations – it would be a good idea not to buy the worst house if it needs lots of work!

When making this decision on your financial future, do your homework. Buying a home should not be rushed. Research the area, research what you can afford to pay – and think of this decision like an investor would. After all, the stability of your finances and ultimately the credibility of your credit file rests with it.

The government’s Money Smart website provides good advice on Buying a Home:

How much can you afford?

A good way to find out how much you can afford to spend on a property is to review your household budget. If you don’t already have one, use our budget planner to:
- Take what you’ve saved as a deposit, add in first home buyer assistance (if applicable), then work out how much you can afford to borrow
- Work out how much you can comfortably afford to repay on a home loan each month, and add a bit more to act as a buffer in case of interest rate rises
- Include all the costs that come with home ownership: up-front costs like stamp duty and legal fees, ongoing costs like land and water rates, house and contents insurance, and repairs
This article is intended to give ideas only for general information, and should not be taken as financial advice. We recommend you contact a reputable financial adviser about your unique situation to decide what is best for you.

Image: ponsulak/ www.FreeDigitalPhotos.net
02/04/2013
One in four Australians short of cash would default on mortgage

More struggling Australian families than ever do not expect to manage their existing debt levels in the coming months. The numbers of families expecting to have to default on credit like mortgages, utilities, phone and internet bills in the coming months has increased. One in four Australians would default on their mortgage if they were short of cash. This is a worrying trend, and points to a continued lack of knowledge about the ramifications of defaulting on bill payments. For people who end up with bad credit history, they can potentially enter into a cycle of debt that can take years to recover from.

By Graham Doessel, Founder and CEO of MyCRA Credit Rating Repairs and www.fixmybadcredit.com.au.

Alarming statistics have arisen from Dun & Bradstreet’s Consumer Credit Expectations Survey from this month – projecting into the June 2012 quarter.

Over a third of Australian families will struggle to manage existing debt levels, with nearly half (46%) of low-income households expecting difficulty managing their debt. This represents a rise of eight percentage points since the fourth quarter of 2011, 11 points above the national average.

Here are some of the statistics coming out of this survey:

Default expectations

– Overall, more than one in four (26%) of Australian consumers who are short of funds would forgo a mortgage payment.

– Of those families that do find themselves short of cash in the coming months, more than one in ten (12%) would default on a mortgage repayment or internet bill. Fourteen per cent of families would choose to default on their pay television account.

– Nearly one in five (19%) low-income households would sacrifice an electricity bill, three percentage points above the national average. While six per cent would forgo a mortgage repayment.

– An increasing number of young Australians also plan to default on mortgage repayments if short of cash. The survey also found 18 per cent of 25-34 year-olds said this would be the first bill to be sacrificed during low cash flow periods. This also increased noticeably among West Australian (up 13 points to 20%) and Victorian (up six points to 11 per cent) consumers.

Credit use expectations

– Number of consumers planning to use redraw facilities on their mortgage to make a major purchase was up four percentage points year-on-year to 22 per cent.

– 41 per cent of Australian households with children will be forced to rely on a credit card to cover living expenses, up two percent since late last year.

– A growing number of households earning less than $50,000 a year are planning to use credit to cover costs (41%), up from 37 per cent in the December quarter 2011.

– However, 27 per cent of families plan to apply for new credit or a limit increase during the June quarter.

According to Dun & Bradstreet’s CEO, Gareth Jones, the survey results indicate a worrying cycle of debt accumulation and dependency among struggling consumers.

“Nearly one-in-three low-income households expect rising household debt levels, but with limited ability to pay this down. When consumers are increasingly forced to accumulate debt they are unable to manage, just to keep the family finances afloat, this has the potential to quickly become a vicious cycle,” Mr Jones said…

“Before consumers apply for more credit they should assess whether or not they can afford to repay the funds and check their credit report to ensure there are no black marks listed on their file that could make it harder or more expensive to get credit,” he said.

These statistics show that we are just not doing enough to educate large groups of the Australian population on the ramifications of increasing debt, and the importance of meeting credit commitments. Unfortunately, we can’t do anything about the rising cost of living for them, but we can help people prioritise. There needs to be a major shift in the Australian psyche about all credit and a major education campaign on managing debt. I think if we don’t want to end up with some kind of credit crisis in Australia – it is essential.

Gareth Jones puts it finely when he makes the point about how consumers view bill payments:

“Consumers tend to view non-core expenditure such as phone or internet bills as dispensable, however the damage to an individual’s credit history can be an issue irrespective of the type of account defaulted on. The default will stay on a credit report for five years and can severely limit a consumer’s ability to access affordable, mainstream credit in the future,” Mr Jones said.

The ramifications of overdue accounts

Any credit commitment which is more than 60 days in arrears – whether that is a mortgage, a credit card or a phone bill – is considered an overdue account, and a creditor will list this overdue account on the consumer’s credit file as a default.

A default on a credit file is considered a ‘bad credit rating’ by all major lenders, as well as phone and utilities companies.

The consequences of a consumer having a default on their credit file is refusal of applications for credit through most mainstream lenders for 5 years from the date the default is listed on the consumer’s credit file. The consumer is then forced to either seek alternative credit – often at sky-high interest rates, or do without credit for 5 years.

We worked out consumers with defaults on their credit file or a bad credit rating will be hit with a whopping average $15,046.57 or more in additional home loan repayments over the first three years of their loan (this calculation is based on a home loan of $300,000 over 30 years on non-conforming loan interest rate of 9.5% vs standard variable rate of 7%).

What this could mean for Australian consumers

If, as the Dun & Bradstreet Consumer Credit Expectations Survey predicts, the number of Australians who say they have to use credit to pay down debts is increasing – and the number of Australians who say they may default on credit is also increasing – we could see more and more people thrown into a cycle of having to find alternative credit sources at high interest rates as the only means of paying down debts. Or alternatively we could see a higher rate of bad credit history – defaults, Court proceedings and Bankruptcies across the board in Australia.

When a consumer seeks credit rating repair, often times they have been uneducated on how they should have handled their difficult circumstances and particularly financial hardship, prior to the default being issued on their credit file. In this instance I believe the job of a credit rating repairer can be two-fold, in one instance we are repairing the credit rating, and in the second we are educating those consumers on what the correct procedure should have been when faced with that scenario.

If more and more people are in crisis, then the finance industry, credit industry and government as a whole need to tell struggling consumers about their options for managing debt.

Consumers need to know throwing away their financial futures by defaulting on repayments is the last option, not the first when they are struggling with their debts.

For more information on obtaining and managing credit, or for information on clearing credit rating inconsistencies through credit rating repair, contact MyCRA Credit Rating Repairs tollfree on 1300 667 218 or visit our website www.mycra.com.au.

Image: renjith krishnan/ FreeDigitalPhotos.net

Image: Pixomar / FreeDigitalPhotos.net

20/03/2012

New statistics paint positive picture of housing market

The Federal Government’s announcement of the best economic growth in four years and the prediction that interest rates remain steady for the rest of the year, may be the catalyst for a return to slow but positive growth in the housing market. The Government announced today a 1.2 per cent increase in GDP in the 3 months to June 30.

The trend is definitely upwards following the latest housing statistics from the Australian Bureau of Statistics. Whilst a minimal increase, and less than expected by economists, the result should still be heartening for the many brokers, investors and home owners alike who have been waiting with bated breath for something positive from the property market.

Statistics released from the ABS on July’s housing figures show a one per cent rise in home loans for the month which is an improvement on the flat market of the last few months.

Total housing finance by value rose 1.6 per cent in July, seasonally adjusted, to $20.576 billion. The value of home loans for owner-occupied homes rose 1.4 per cent to $14.4 billion after seasonal adjustments. The value of loans for investment homes rose 1.9 per cent to $6.2 billion.

The number of commitments to buy new homes fell 0.9 per cent after seasonal adjustments, while commitments to buy established homes rose 1.3 per cent.

The number of loan commitments for building homes fell 0.8 per cent.

JULY KEY FIGURES

	Trend estimates		Seasonally adjusted estimates
	Jul 2011	Jun 2011 to Jul 2011	Jul 2011	Jun 2011 to Jul 2011

Value of dwelling commitments(a)(b)	$m	% change	$m	% change
Total dwellings	20 449	1.2	20 576	1.6
Owner occupied housing	14 280	1.5	14 370	1.4
Investment housing – fixed loans(c)	6 169	0.5	6 206	1.9
Number of dwelling commitments(a)(b)	no.	% change	no.	% change
Owner occupied housing	49 548	1.7	49 813	1.0
Construction of dwellings	4 796	1.3	4 757	-0.8
Purchase of new dwellings	2 098	2.3	2 084	-0.9
Purchase of established dwellings	42 654	1.7	42 972	1.3

(a) Includes refinancing (see Glossary).
(b) Excludes alterations and additions.
(c) Excludes revolving credit.

Value of dwelling commitments,
Total dwellings
Graph: Value of dwelling commitments, Total dwellings

No. of dwelling commitments,
Owner occupied housing
Graph: No. of dwelling commitments, Owner occupied housing

Coupled with the small rise in home loans, were statistics released yesterday from the ABS showing household spending has also risen 1 per cent in the

With this small boost in confidence, will be the need for prospective home owners to ensure they have not been tarnished by the gloomy periods of recent months in respect to their credit file. It would suggest this could be a good time for people to do a credit check, and ensure their credit report comes back clear.

Whilst the outlook may be positive, it probably hasn’t transferred to banks yet – so they may still require borrowers to have a clear credit file to obtain a mortgage in the current market.

People should be aware that any repayments which were left late past 60 days may have been listed on their credit file as defaults. This includes any bills which were in dispute.

People should also be aware that creditors make mistakes when putting listings on credit files all the time. Sometimes it can be a case of mistaken identity, the wrong person ends up with the bad credit rating, sometimes it can be a change in address which causes the adverse listing, or simple computer error. So it is worth doing a free check every 12 months, even if people think they should have no adverse listings on their credit file.

It is the credit file holder’s responsibility to obtain a credit report from the credit reporting agencies and ensure their credit file is as it should be. Contrary to popular belief, if the credit report shows inconsistencies, people do have the right to have them removed. If a listing has been put there in error, it is possible to have it removed – NOT JUST MARKED AS PAID. For those people who were previously unable to obtain a mortgage due to credit file defaults this may open a door they thought was closed for 5 years (the term of a default).

For more information on how to check credit files, and for help with credit rating repair, visit MyCRA Credit Repairs website.

08/09/2011

Found a better home loan? Check your credit file before applying to refinance

Media Release

25 August 2011

Home owners refinancing in the wake of the government’s scrapping of home loan exit fees should consider the health of their credit file before they make a new application, according to a national credit repairer.

Director of MyCRA Credit Repairs, Graham Doessel says existing home owners should exercise their right to a free credit report from the major credit reporting agencies prior to making any enquiries on a new home loan.

“People who already have a mortgage probably haven’t considered how important a clear credit rating is – even second time around. Regardless of whether people have been diligent payers, creditors can and do sometimes make mistakes with people’s credit files and some people end up with black marks against their name that shouldn’t be there,” Mr Doessel says.

A bad credit rating can result when a bill or repayment goes unpaid past 60 days. After this time, a creditor has the right to list that non-payment as a default on the person’s credit file.

“In the current finance market, any black mark generally results in an automatic decline with the major lenders. Even too many credit enquiries can blow someone’s chances of finance approval, so it really is important for people to know what is said about them on their credit report before they go in to refinance,” Mr Doessel says.

This comes as The Telegraph reported earlier this month existing home owners are staying put and refinancing in high levels.

It reported mortgage broker Australian Finance Group’s figures of about 39 per cent of their July mortgages were from people refinancing. AFG attributed this trend to the major banks competing very aggressively on fees and price since exit fees were banned.

“If you have a home loan at the moment, it’s the best time in 20 years to be looking for a better deal,” AFG spokesman Mark Hewitt said.

Mr Doessel says many of his clients have been in the middle of refinancing, whether to reduce their repayments or to get a better deal – when the bank has performed a credit check and found defaults against their name.

“Sometimes people don’t know their good name is compromised until they apply for finance and are refused. Many times if they had checked their credit file they may have had the chance to rectify any errors or save themselves the embarrassment prior to applying for the loan,” he says.

Mr Doessel says approximately 63% of the clients who contact his company for credit repair would be people who have defaults, writs or Judgments which are listed in error on their credit file.

“We have clients who are facing identity theft; some are caught in issues over separation from their spouse; some have been disputing a bill which went to default stage and many people are just victims of the fallout from inadequate billing procedures – wrong names, wrong addresses, human and computer errors,” he says.

Under current credit reporting legislation, consumers have the right to a free credit report from the credit reporting agencies once a year.

People need to contact all the credit reporting agencies to request their report – as creditors have access to 3 agencies within mainland Australia and 4 in Tasmania. The report must be provided to them in writing within 10 days of the request.

Consumers also have the right to have any inconsistencies on their credit file rectified. Defaults can be marked as paid if the account has been settled.

But Mr Doessel says listings are not removed by creditors unless the file holder can provide adequate reason and lots of evidence as to why the listing should not be there.

“Credit repair requires knowledge of the legislation, lots of evidence and perseverance. But for those people whose financial freedom is hindered because their credit file contains errors, it is a point worth fighting for,” he says.

/ENDS
Please contact:
Lisa Brewster – Media Relations Mob: 0450 554 007 media@mycra.com.au

Graham Doessel – Director (07) 3124 7133 http://www.mycra.com.au

MyCRA Credit Repairs is Australia’s leader in credit rating repairs. We permanently remove defaults from credit files.

Link: http://www.dailytelegraph.com.au/money/better-mortgage-deals-beckon-as-banks-create-more-deals/story-e6frezc0-1226108846876

Image: renjith krishnan / FreeDigitalPhotos.net

29/08/2011

Tag: mortgage

Banks Check Facebook To Stamp Out Liar Loans Catching Out Innocent Home Buyers In The Process

Liar Loans have been written about before, but did you know Banks are now trolling your Facebook and other Social Media spying on you without your consent?

This release highlights how a harmless joke on Facebook cost a young lady her chance at home-ownership – and it could happen to you too…

What Happens If You Lie On Your Home Loan Application?

Studies reveal that 37% of home loan applicants lie on their homeloan application forms

It’s disgusting to think this could actually be true in 2020, worse still that’s it’s hidden in plain sight. This release lifts the lid on financial gender inequality and

Why Women Could Be Locked Out Of Home Ownership Simply Because They Are Female!