Did you know that you can borrow up to 95% of the purchase price with lenders that do not credit score?
Just because you have a low credit score, it doesn’t mean that you can’t buy a home and get a competitive interest rate.
You must still be credit worthy, however the lender will use common sense and their guidelines rather than a computer generated decision.
This is perfect for Australians who are just outside of the bank’s lending criteria.
Who will this work for?
This will work well if you are in any of the following situations:
- You have a low credit score.
- You have no credit history / you have never borrowed before.
- You need to borrow up to 95% of the property value.
- You have had a bad history with your current bank.
- You have too many credit enquiries.
- You have changed jobs recently.
- You have moved house recently.
- The location of the property / type of property is unacceptable to your bank.
- You have a problem with your Equifax Score (previously VedaScore) or credit file with Veda Advantage and need to borrow no more than 90% of the value of the property.
If you qualify, then call our mortgage brokers on 1300 889 743 or enquire online and we’ll help you to get approved!
Who will this not work for?
We can’t help you if you fall into the below categories:
- You have no savings. Why don’t you consider a guarantor home loan instead?
- You have serious credit problems such as a default or judgment and you need to borrow over 90% of the value of the property.
- You can’t afford the loan.
What if I have no credit score?
If you are new to Australia or a young adult who has never applied for credit then you will not have a credit file.
When you first apply for a loan your credit file will be created. However, because you have no credit history, this will cause you to have a low score.
In some cases it is best to apply for a small credit card several years before you intend to apply for a home loan, so that you have a credit file and credit score with a significant history.
If this isn’t possible then there are lenders that do not require you to have a credit history and can consider your application on its merits.
Which lenders offer low credit score loans?
There are several bank and non-bank lenders that do not credit score applications.
The rules vary significantly depending on the lender, so we usually work out which lenders you qualify with and then let you decide which one you would prefer to apply with.
We also have access to specialist lenders that can accept serious credit history issues as long as your loan is for no more than 90% of the value of your property.
If you have a problem with your credit history such as a default, judgement or court writ, it is likely that you will pay a higher than normal interest rate.
Are the interest rates higher?
In most cases we can help you apply for a mortgage with the same discounted rates available from the major banks.
This is because there are some second tier banks and non-bank lenders that either do not credit score or will use common sense to assess your application if your score is too low.
If your situation is more serious, then we may need to apply with a specialist lender who will have a more expensive rate. In most cases the price difference is not too significant and is likely to be similar to the bank standard variable rate.
What about my credit history overseas?
Australian lenders cannot normally view any overseas credit files.
For example if you move to Australia from the USA then your FICO score cannot be accessed by your Australian bank.
However in some cases NZ citizens can have their credit score in New Zealand checked by an Australian bank. This is due to some banks having a presence in NZ and Veda Advantage being in charge of the credit file databases for both countries.
This means that if you have just moved to Australia then you may have trouble getting a loan. There are specialist loans for temporary residents and new migrants which will allow you to get approved.
Apply for a mortgage
Please enquire online or give us a call on 1300 889 743 and one of our mortgage brokers will help you to work out which lenders you qualify with, and at what interest rate.