RFB - BLOG


RedCap Finance Brokers is a Credit Representative of EZ Finance!

RedCap Finance Brokers' Credit Licensee is EZFinance Pty Ltd.

So who is EZ Finance? They are a great alternative to the major banks when looking to finance your next purchase and with our credit licence (ACL 392611) we can help people all around Australia. So what makes EZ Finance so different?

Unlike a bank who can only offer you a few specific options on finance,  EZ Finance have over 120 different banks, non banks, credit Unions and private Lenders, linked to our platform.

We are authorised representatives of these banks and lenders which means we can help you to choose the right bank or lender, with the best interest rate and more importantly, we know which banks and lenders would most likely approve a loan for you, because they are all different and have different lending criteria.

The EZ Finance Group of brokers are well placed to help you, to get the finance you need.

Inquire Here

EZ COMMERCIAL

RedCap Finance Brokers

We love Finance and we specialise in it! Our Business Credit Advisors bend over backwards to make sure you get the best finance deal on whatever you need to purchase.

It doesn’t matter if you have a poor credit rating, self-employed or in a great financial position, EZ Finance will quickly assess your financial situation to come up with the most appropriate solutions.

As an authorised representative of the banks and lenders we deal with, they pay us to help you, so 99% of the time, our service to you is FREE.

Business & Commercial Loans. Get the right deal for your circumstances EZ!


Home Deposit Gap Finance - 2 Methods

Deposit Finance - Vendor

By ©Copyright 2020 Cordato Partners

"Vendor" Deposit Finance is where a seller ‘tops up’ a purchaser’s funds to cover a ‘shortfall’ between the loan advance the purchaser is able to obtain and the cash they have available to pay the price payable to purchase a property or to pay out vendor finance

Basic Structure

  • To set up the Deposit Finance form of vendor finance, the buyer must qualify for a bank loan. The bank loan might be ‘low doc’ which is up to 80% of the value of the property, or 85% or 90%, or for commercial property, 70%. The bank will take a first mortgage over the property as security for the loan. The buyer’s bank must not object to the Deposit Finance – buyer’s banks do not normally object so long as they lend no more than 80% of the value / price.
     
  • The Deposit Finance is documented by a Loan Offer, a Mortgage and a Caveat, which are standard loan documentation used by providers of Second Mortgages. Usually the interest rate will be the same, or similar to the buyer’s loan with the bank. But the term of this vendor finance will be shorter – and the instalments will be interest only, or principal and interest, with a balloon payment at the end of the 2, 3 or 5 year term.

Illustration

A property is advertised for sale at $250,000. A The seller offers to assist the buyer to pay a 20% deposit of $50,000, by the seller giving deposit finance, with the remaining 80% of the price of $200,000 loaned by an external financier.

The buyer pays interest only of $76.92 per week on the deposit finance, calculated at 8% per annum on $50,000, and repays the $50,000 at the end of 3 or 5 years out of savings or external financing.

Alternatively, the buyer pays instalments of principal and interest of a higher amount than $76.92 per week, and pays out the amount outstanding at the end of 5 years.

This illustration is a deposit finance form of vendor finance, which is used to fund the payment of the deposit, documented by a loan offer and a mortgage.

How does Deposit Finance work for owners and investors?

Deposit GAP Finance - Personal Loan

by RedCap Finance Brokers

Personal Loans

We have Lenders who will lend on almost anything.

Common Personal Loan purposes are debt consolidation, home improvement, gap finance, new or used car, house furnishings, course fees, dental expenses, medical expenses, weddings, and travel.

Amount: Borrow Between $5,000 to $50,000 (Credit Limits apply based upon Credit Score and Income levels)

Term: 3, 5, or 7 years

Requirements?

  • Currently EMPLOYED earning above $20,000 pa (NB: If Centrelink income, it must be less than 50% of total amount earned)
  • 18 years of age or older
  • Australian citizen or Permanent Resident Visa Holder

Credit History: Default / bankruptcy / judgements ???

  • Paid defaults: the default needs to have been paid for a minimum of 12 month with clean payments on bureau in the past 12 months
  • Unpaid defaults: non-financial default > 12 months ago with clean payments on bureau in the past 12 months
  • No bankruptcies or judgements in last 7 years

Additional requirements for $50,001 - $60,000 NAF loans

  • Minimum income: $100,000 p.a. for $50k and $110,000 p.a. for $60k 
  • Residency: Homeowner and at current address for the least 2 years 
  • Employment: Full time employment for the last 2 years
  • Credit file: Clean repayment history over the last 12 months and no new lending in the last 6 months