Owning his house without a mortgage would indicate he has a repayment history which is what would give him points.
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How about he was an only child & was gifted the house!
I posted the first two and this one because the first two tenets of lending are the willingness and ability to repay, not security (which we don't have) or asset values. After this one, no more. BUT, I won't be surprised if Harmoney cops more flack if these become quite normal.
Given their ages and their income sources a bank would probably consider that their future income potential is always going to be benefit based - super will replace whatever they are on now. That makes the ability to repay equation unacceptable for a bank. I'd bet that they've been declined by banks which is why they are with Harmoney. So, potentially, unacceptable risk at standard bank mortgage rates but acceptable for Heartland Bank through Harmoney? The difference being that standard bank lending considers loans as individual transactions and Harmoney's bulk funders consider the pool of their investment.
Anyone been with harmoney for 3-5 years yet? would be interested to see how many loan actually reach maturity. Whats your RAR? Any1 making above 15%? (only those that have been with harmoney over 3yrs)
My first deposit was October 2014, my RAR is currently 17.47%. I have been depositing steadily over that period, probably more heavily over the last 15-18 months (hence the high RAR today).
Borrower fee so large must be as a result of payment protection. How's this for a scenario...borrower has terminal illness and life insurance as well as payment protection now. Want's last big OE with partner comfortable that repayment is fully covered in the not to distant future?
On their incomes I'd hate to be paying life premiums for meaningful cover - and Payment Protect protects the borrower, not the lender.