Call us now 1300-889-743

Low Credit Score Home Loan

Did you know that you can borrow up to 95% of the purchase price with lenders that don’t 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 still need to be credit worthy but 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 Equifax (which used to be 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 and will held with credit reporting agency Equifax, which was previously Veda Advantage.

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 Equifax 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.

  • Abigail

    I’m a temporary resident from UK and want to get a mortgage here. My solicitor advised me that my credit score could be low since I am new for Australian banks, can I use my credit report from the UK which was quite good.

  • Hi Abigail,

    Lenders will go by your current credit report in Australia and would not consider your credit report from the UK.

    Not all lenders base their decision on your credit score, in fact there are some lenders who don’t credit score at all. It’s just a matter of figuring out which lender best suits your situation, and our mortgage broker may be able to assist you on this.

  • Balgruuf

    I don’t have any savings right now and a low credit score too. Will I get a mortgage or should I wait until I save enough?

  • Hey Balgruuf, we can’t help you if you have no savings. You can consider going for a guarantor home loan instead though. You can learn more about it here:

  • Jeremy JM

    What should I do to increase my credit score?

  • Hi Jeremy,

    The first step is to identify what is causing your loan to fail the bank’s credit score. You’ll find that fixing the weaknesses of your situation is more effective than improving your strengths. If you fix the wrong aspect of your situation then you will waste a lot of time and not get much result. Once you have fixed up any problems you can work on aspects of your situation that can improve your credit score, and in doing so you will maximise your chances of getting your home loan approved. Please check out the improve my credit score page for more info:

  • Rach

    If my partner goes for the loan in his name only is my credit rating taken into account with his loan?

  • Hi Rach
    You’re correct the lender would not assess your credit rating if you are not on the loan. However they may take your living expenses into account so they may decline his loan due to his borrowing power being reduced. This is because if someone has a partner who is not on the loan then the banks tend to assume they are financially dependent on the borrower.
    For a home loan there are some lenders that can ignore your living expenses if we can prove that you have a job or are otherwise financially independent.

  • Steen

    Hi, please provide the link to some of your testimonials / case studies on your clients so I can research a bit and see if there’s anything that applies to my situation.

  • Hi Steen, below is the link to the client stories section on our website. If you’re still not sure about something or you’d like to learn more, please feel free to contact us.

  • Ricki Nolan

    My wife and I both have low(ish) credit scores caused by credit enquiries, not defaults. We already own a block of land valued at $100,000+ but wish to build a transportable home at a cost of $245,000 plus connections and council costs. Do you have a lender who can help?

  • Hi Ricki,
    We can assist with the credit score issue however building that type of home is not acceptable to most banks. You need to fund construction yourself and the bank can only advance funds when construction is complete. If you build a regular home we can assist.

  • David rose

    I am a sole trader I have about $56,000 to go to pay off the first home I also own a block next door which I would like to join and make one block. I have the main house ranted and I wanty to build a new house about the size a granny flat two bed room.
    can you guys help plus all of this is out side cbd it’s in country nsw..
    thank you.

  • Hi David,
    Yes we can assist with this but we have a minimum loan size of $300,000. I’ll email you some options.

  • Ajay Singh

    I am building a house and i have paid 5% deposit and i have savings for another 5 to 6% as in down payment. Down part is i have 2 defaults which are already paid and closed but my wife has good credit history and we both going in loan. So what should i do? Who would you reckon will give us a loan? Thanks

  • Hi Ajay
    We have some lenders that can help with a 95% loan inclusive of LMI. That means you’d get 91% – 92% of the land value plus cost of construction after LMI is paid.
    Once you’ve got a clear credit history then we can refinance your loan to a mainstream lender. But until then you’d have higher repayments.