Applying for a bad credit home loan

Any general questions you might have in regards to loans and finance.
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Chino44
Posts: 3
Joined: Fri Feb 08, 2019 7:39 pm

Applying for a bad credit home loan

Post by Chino44 »

Hello,

My bank (Westpac) just rejected my home loan application explaining that it was because the property I wanted to purchase was in a Category 3 location, and because they saw that I once had a default of $3,000on my credit card.

Now that I have repaid my debt in full, I’m trying to gather all my options. I don’t really want to look for another property in another location. Could you please advise me on what I can do? Any assistance would be highly appreciated.

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Otto Dargan
Mortgage Specialist
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: Applying for a bad credit home loan

Post by Otto Dargan »

Hi Chino,

Welcome to the forums.

Because properties in Category 3 locations tend to have fluctuating market prices, banks consider it to be medium to high risk. That could be one of the reasons why your application got rejected.

You might still be able to get a home loan with a lender that is more willing to accept properties in rural locations..

However, what will really affect your chances at home loan approval is your credit card default.

What really strengthens your chances is the fact that defaults under $500 are considered small and you have actually repaid the default in full.

If this was one a one-off event and you can proof of this and the fact that you're now in a better financial position, you'll have a good chance at getting approved.



The key is presenting a strong case to a lender that specialises inbad credit home loans.



Call 1300 889 743 to speak with one of our expert mortgage brokers or fill in our free online assessment and one of our expert mortgage brokers can assist you in finding the right lender.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Chino44
Posts: 3
Joined: Fri Feb 08, 2019 7:39 pm

Re: Applying for a bad credit home loan

Post by Chino44 »

Wow! Thanks for the info. Could you provide me with a little bit more info about these specialists lenders, please? Is it safe to apply for a loan from them? Could you perhaps name a few as well, so that I can look them up online?

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Otto Dargan
Mortgage Specialist
Posts: 7729
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Applying for a bad credit home loan

Post by Otto Dargan »

Hey Chino,

It’s completely natural to be worried but applying for a loan from specialist or non-conforming lenders is very safe.

They are still regulated through the National Consumer Credit Protection Act 2009 (NCCP Act) which means the bank cannot offer you a product that is not unsuitable for you or put you in a worse financial situation.

However, they are far more flexible than major banks.

The trade-off is that they normally charge a high-interest rate because you're considered a higher risk borrower. Because of this, specialist lenders should be thought of a short-term solution.

We have access to many non-conforming lenders that can help borrowers get approval for a home loan with defaults.

Some of the lenders that we work with include:
Please feel free to check them out.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Chino44
Posts: 3
Joined: Fri Feb 08, 2019 7:39 pm

Re: Applying for a bad credit home loan

Post by Chino44 »

I will. Thanks. Can you tell me why these specialist lenders help people with bad credit?

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Otto Dargan
Mortgage Specialist
Posts: 7729
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Applying for a bad credit home loan

Post by Otto Dargan »

Hey Chino,

Specialist lenders recognise that Australians with bad credit are looking for a second chance at a happy life, whether it’s buying their own family home or consolidating debt to reduce their financial burden.

Borrowers who are approved for bad credit home loans rarely default on their mortgages again.

In fact, their default rates tend to be lower than “clean” borrowers!

Non-conforming lenders recognise this and so do we.

We also have a mission to give every Australian a fair go at owning their own home.

So please call 1300 889 743 to speak with one of our expert mortgage brokers or fill in our free online assessment and one of our expert mortgage brokers can assist you in finding the right lender.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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