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Non-Resident Lending, Credit Reporting

Non-resident lending – Credit History report

During my time as a mortgage broker in the non-resident lending space, I always have people asking me what a credit history report is, how to obtain it, and why they need to provide this report after I send out the document checklist for a non-resident loan application.

Most lenders in Australia will check an applicant’s credit history at a certain point once they apply for their loan. This report shows an applicant’s recent credit enquires, current loans in some cases, employers details and other key information. Lenders will analyse that information to reduce their risk. They also have direct access to credit files in Australia.

In non-resident lending, the financial institution asks that this document be provided by the applicants for the same reason – to minimize the lending risk.  Therefore, this is an essential supporting document for foreign investors to obtain a loan in Australia.

How to get a credit history report

There are many credit agencies over the world managing people’s credit files. In Australia, Canada, the UK it is Equifax. In United states, it is Experian and Trans Union, in Malaysia is called CTOS etc.

At My Mortgage Freedom, we have got a contact list of credit agencies over 110 countries in the world.  If you are not sure where to obtain your credit file, please send an enquiry through our website or contact us by phone on 03 8256 1914.

What information an overseas credit history report contains.

Generally, a credit history report will show the following information:

  1. Liabilities that include: home loans, credit card limits, personal loans, line of credit etc.
  2. Repayments records for different liabilities
  3. Current and previous addresses
  4. Marriage status
  5. Employment details

In certain countries it will also show:

  1. Any directorships or shareholdings of a business
  2. Donations made through salary sacrifice
  3. Education level etc.

There are different versions of these reports that contain various amounts of information, speak to one of our senior mortgage consultants today to ensure you have the right version for your loan application.

Tips for your application

The most common issue in credit history reporting is credit card limits. Rules relating to credit card in some countries are different in comparison to Australia. The more credit card and higher credit limits a person has, the good credit position a person will be standing at.  However, these credit limits will be considered as liabilities in Australia and it will reduce an applicant’s borrowing power significantly.  It will be beneficial to identify cards not actively being used and provide the opportunity to cancel them or reduce the limit a month prior to your loan application.

For more information on the overseas credit history report please feel free to contact us.

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