A simple definition of "non-conforming home loan" is: You have a job and be able to make payments. Your credit is used only to determine Interest rate and the amount of the loan to value ratio of home.


To determine the size you are eligible for a mortgage, the lender uses three qualifying criteria. They're the following. You can also contact non-conforming home loan lenders in Australia to get more information about home loans.

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1. Debt Ratios:

Your monthly expenses (including mortgage payments, property taxes, insurance) should total no more than 28% of your monthly gross income.

Lenders feel that if they follow the guidelines, homeowners will be able to pay their mortgage comfortably and lenders need not worry about default loans and foreclosure.

2. Credit:

Any delay in payment should have a good explanation and generally no more from one 30-day late payment is allowed within 12 months.

3. Funds to Close:

You must have a down payment, which must be your own funds, and closing costs. Additionally, you must have at least two months extra payment in the bank.


1. DEBT RATIOS: Each non-conforming lender has a different set of guidelines; therefore, this section should be used only as a general example.

2. Credit: Used to calculate credit risk (interest rate).

3. Funds to close: This can come from many different sources; for example, the seller of the goods back, equity.