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Re: Partner has good credit and I have bad credit. Can we still get a mortgage?

Posted: Wed Sep 18, 2019 7:35 pm
by Otto Dargan
Hello Tricia. Welcome to the forums.

Thank you for reaching out to us.

Yes, you can still move forward with getting a home loan even when your partner has with bad credit.

However, if you have too many credit enquiries on your credit file, then you can be seen as a high-risk borrower.

In most cases, most major lenders prefer it if you have less than two enquiries over the last six months. There are some lenders who are stricter and will ask for explanations as to why the enquiry is on your credit file in the last two years.

The reason you provide to the lender is a determining factor on whether your home loan will be accepted or not.

Our mortgage brokers have worked at credit departments of many banks and specialist lenders so they understand exactly how lenders assess bad credit home loan applications like yours.

We work with specialist lenders who offer competitive bad credit home loans.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan, even with bad credit.

Cheers,

Re: Partner has good credit and I have bad credit. Can we still get a mortgage?

Posted: Wed Sep 18, 2019 8:01 pm
by Otto Dargan
Hi Tricia,

There are many options you can choose from when a partner has bad credit when you’re applying for a home loan:
  • Your husband could apply as the sole applicant but this would mean that only his income will be serviced and only his name will be on the property title.
  • A common debt reducer home loan (CDR) is where there is only one applicant but the CDR allows the use of reduced living expenses and shared debts for servicing the loan as long as the non-borrower can evidence self-supporting income.
  • Another option is to have two people on the property title and only your husband’s name on the mortgage, commonly known as one borrower, two owners.
  • You can opt to apply with lenders that accept deal with bad credit home loans. Depending on your situation and reasons for bad credit, you might have to pay higher interest rates.
  • If none of these options works for you, then you might wait for the credit file to be clear of any adverse listings and improve your credit score. In the meantime, you and your husband could work towards saving a larger deposit.
Cheers

Re: Partner has good credit and I have bad credit. Can we still get a mortgage?

Posted: Wed Sep 18, 2019 8:26 pm
by Otto Dargan
Hi Tricia,

Some other tips to improve your credit score are:
  • Do not overdraw your cheque account.
  • Pay all your bills on time.
  • Do not apply for a new credit card
  • Try your best to pay off your debts on time.
  • Pay any defaults on your credit file as soon as possible instead of waiting for them to be removed.
  • Don’t apply for loans that you don’t require as this would create an enquiry on your credit file.
  • Open a savings account and try to save as much as you can.
It takes time and a lot of effort for your credit score to improve. However, enquiries older than 12 months do not affect your credit score.

To see if your credit score has improved, you can get a free copy of your credit report once a year from three Credit Reporting Agencies.

Speak to our mortgage brokers and we can help you find a lender that is lenient towards your situation.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a home loan.

Cheers,