Can I get a home loan if I have bad credit?

Any general questions you might have in regards to loans and finance.
Bobby B
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Joined: Tue Jan 29, 2019 3:43 pm

Can I get a home loan if I have bad credit?

Postby Bobby B » Tue Jan 29, 2019 3:49 pm

I’m self-employed and in a good financial position. However, I missed a few repayments on my credit cards and a car loan back in 2016. I have repaid them in full but I have a few defaults on my credit file. How do I get approved for a home loan with bad credit?

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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: Can I get a home loan if I have bad credit?

Postby Otto Dargan » Tue Jan 29, 2019 5:03 pm

Hello Bobby B. Welcome to the forums.

Major banks and lenders will likely decline your application for a bad credit home loan simply because of your credit file history. However, there are non-conforming or specialist lenders that are more flexible with their lending policies.

Our mortgage brokers will actually sit down with you, ask you the reasons for the financial problems, and talk about how you managed to get your financial situation back on track.

By gathering good evidence and explanations for your adverse credit history, the broker can stop you from getting unnecessarily declined and adding another credit enquiry to your credit file.

Our mortgage brokers have worked in the credit departments of some of the biggest lenders in Australia, so they know what lenders are looking for in a home loan application. We also have a panel of 40 lenders to choose from.
Give us a call on 1300 889 743 to speak directly with one of our specialist mortgage brokers or fill in our online enquiry form.

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

Bobby B
Posts: 3
Joined: Tue Jan 29, 2019 3:43 pm

Re: Can I get a home loan if I have bad credit?

Postby Bobby B » Tue Jan 29, 2019 5:46 pm

That sounds promising. How do non-conforming lenders work? Do they charge a higher interest rate?

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Otto Dargan
Mortgage Specialist
Posts: 7585
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Can I get a home loan if I have bad credit?

Postby Otto Dargan » Tue Jan 29, 2019 6:18 pm

Hi Bobby B,

The interest rates that are offered on bad credit home loans reflect the risk to the lender. That means the higher the risk for your loan, the higher the interest rate they will charge you.

The lenders assess your application for a bad credit home loan on a case by case basis. They will listen to your story as to what went wrong and assess your repayment capabilities.

Generally speaking, if you’re borrowing under 80% of the property value, then you can get a cheaper interest rate.

For those looking to borrow over 80% or if you’ve had a severely impaired credit history, then the rate can be higher.

Depending on the severity of the black marks, we may be able to get you approved with a second-tier lender (just under the major banks) as an exception to policy.

Speak directly with one of our experienced specialist brokers to find out if we can negotiate a cheaper rate by calling us on 1300 889 743 or by filling in our free assessment form.

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

Bobby B
Posts: 3
Joined: Tue Jan 29, 2019 3:43 pm

Re: Can I get a home loan if I have bad credit?

Postby Bobby B » Tue Jan 29, 2019 7:39 pm

Who exactly are these non-conforming lenders? Can you name some of them?

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Otto Dargan
Mortgage Specialist
Posts: 7585
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Can I get a home loan if I have bad credit?

Postby Otto Dargan » Wed Jan 30, 2019 4:58 am

Hi Bobby B,

We hold an Australian Credit License (ACL) as required by the National Consumer Protection Act 2009 (NCCP Act), allowing us to work with non-conforming lenders.

The non-conforming lenders that we deal with include:
  • Bluestone Mortgages
  • Liberty Financial
  • Pepper Money
  • Auswide Bank (formerly Widebay Australia)
  • Adelaide Bank
  • La Trobe Financial
  • Resimac
  • RedZed Lending Solutions
  • MKM Capital

We have a team of dedicated bad credit mortgage brokers with many years of experience. Call us on 1300 889 743 or fill our online enquiry form today.

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


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