If you borrow money from the bank to buy a home then your using "Bank Finance". Vendor finance is therefore the owner of the home lending you the money so you can buy the home.
Our customers are people who don't qualify for a home loan today. There are many reason the bank has said no. Below are some of the most common:
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Don’t have a big enough deposit.
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Are self employed.
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Have a credit problem of some kind.
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Have no credit history.
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Have not been in their current job long enough.
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Have not lived at the current address long enough.
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New Migrants.
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Any reason the bank comes up with to say NO!!
House Sales Direct purchases houses especially to sell on Vendor’s Terms. You the purchaser makes payments to House Sales Direct until you are able to go to a bank and qualify with them. The contract is set up over 30 years but you are able to refinance or sell the property at any time you choose. We encourage our purchasers to refinance as soon as they are able to do so.
When we sell a house to you, you will receive a Contract of Sale that includes additional information about your loan repayments. The price of the home is fixed at the time of purchase and cannot be altered. We will provide you with regular statements showing your payment history, which may assist you in refinancing with another lender.
Your loan will have a variable interest rate. Your payments will go up if bank interest rates rise and your payments will go down if bank interest rates fall.
To apply for a house you will need at least one kind of earned income between all applicants. Our approval process is extremely simple. Click here for the application.
As soon as are able to qualify with a bank or other lender you should do so. We are a stepping stone from no home to getting into the regular banking system.
The title will also transfer to your name when you refinance.
Before you can get your own loan you will need to build up your equity in the home.
There are three ways to increase your equity. You have control over two of them.
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Make additional payments.
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Make improvements to the house.
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Wait for the house to go up in value all by itself.
You won’t be able to refinance unless one or more of these things happen.
Our minimum deposit is $5,000 plus the First Home Owners Grant. If you do not qualify for the grant then your deposit will depend on your income. We can discuss this when you make contact with us.
The only fee involved is $800. This is paid when you give us your application. The $800 is used to prepare the documents for you to purchase of the house from House Sales Direct and is not refundable once the documentation is prepared. If your application is not successful the $800 is refunded.
The deposit is payable before you move in.
What about the First Home Owners Grant?
If you, or your partner has never owned a home before then you may be eligible for the grant. We will provide you with the application if you meet the criteria for the grant. You can find out more about the First Home Owners Grant at www.sro.vic.gov.au.
Your repayments are principal and interest . The amount of your repayments is in your contract and will be explained to you in full. All repayments are to be made according to the contract. This is either weekly, fortnightly or monthly. This is usually decided depending on when you get paid. Your payment is made up of your loan repayment and a weekly allowance to cover rates and insurance. At the moment this allowance is about $35 a week
Who pays the Rates and Insurance?
You are responsible for the payment of Building Insurance, Water and Council rates. They are paid by OPM Properties out of the $35 per week allowance that you pay with your repayment.
We only accept repayments by weekly Direct Debit to House Sales Direct.
What if I want to make extra payments?
Extra payments can be made at any time and will help build equity in your home.
You can’t decrease your payments below the minimum required, and your loan has no redraw facility, so you shouldn’t make extra payments if you are likely to want them back.
What if I can’t make the repayments?
If for some reason you are unable to make your payments , you should contact us immediately to discuss the matter. It is essential that you maintain contact with us if there are genuine reasons for late payment. Situations cannot be resolved unless you contact us.
Your contract can be cancelled if you are in arrears by a certain amount and you don’t pay the outstanding amount within a given time. The legal process for non-payment is detailed in the contract of sale.
Do I need to use a solicitor when I buy a house?
We encourage you to seek independent legal advice to ensure that you understand your contract. Conveyancing is only required when you refinance or pay out your loan.
What do I do next if I am ready to buy?
The quickest way to get started is to contact us now.
This information is not financial or legal advice. It is intended to be a guide to the service we provide. We reserve the right to change or improve our systems at any time. You should seek independent financial and legal advice before buying a property using our services.