What is Vendor Financing?

VF is not a new concept, in fact, it has been around for years. That's how my grandparents bought their house when they came to Australia in the 50s...their builder financed the purchase!

The vendor assumes responsibilty for the loan and usually charges a higher interest rate for the property and often adds a small percentage to the house to compensate for a potential future loss he/she might suffer. The time in the deal varies with most wanting a refinance within three to five years, however, some are happy to finance 25 years.

It is something you might consider if:

• You don't have much of a deposit
• You are a discharged bankrupt
• You don't like dealing with banks
• You might have a blemish on your credit file

There are a number of ways in which to structure these deals. Sometimes the vendor will let you choose the property other times the property is offered.

Please contact us if you wish to explore this option.

Vendor Finance