I need a home loan provider that can look past defaults from two years ago

Any general questions you might have in regards to loans and finance.
Curtis
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Joined: Wed Jun 05, 2019 5:01 pm

I need a home loan provider that can look past defaults from two years ago

Postby Curtis » Wed Jun 05, 2019 5:03 pm

Hi, I spent a couple of years in the UK and when I came back to Australia and applied for a home loan with CBA, they knocked me back. I had a nasty surprise waiting for me. There were two defaults listed on my credit file; one for an unpaid mobile phone and the other was an internet bill (Telstra). I had simply forgotten about them. I need a bank that can look past defaults from two years ago?

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Otto Dargan
Mortgage Specialist
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Location: Sydney, Australia
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Re: I need a home loan provider that can look past defaults from two years ago

Postby Otto Dargan » Wed Jun 05, 2019 6:07 pm

Hello Curtis. Welcome to the forums.

Major banks and lenders will likely decline applications from Australians with bad credit looking for a home loan. However, there are non-conforming or specialists lenders that are more flexible with their lending policies. They use a common sense approach and will assess your home loan application on a case by case basis and listen to your story as to what went wrong.

Bad credit home loans offered by non-conforming or specialist lenders are designed to help the outside the box applications that don’t meet the bank’s guidelines.

You can get approved for a home loan even if you have several defaults on your credit file. The types of defaults that you have, how old they are, if they’re paid, the total number and the dollar value of the defaults are all taken into account by our lenders.
  • Less than $500 in paid defaults: You can borrow up to 95% of the property value.
  • Less than $1,000 in paid defaults: You can borrow up to 90% of the property value.
  • Any unpaid defaults or larger paid defaults: You can borrow up to 90% of the property value with a specialist lender.
We specialise in 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 bad credit mortgage.

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

Curtis
Posts: 3
Joined: Wed Jun 05, 2019 5:01 pm

Re: I need a home loan provider that can look past defaults from two years ago

Postby Curtis » Wed Jun 05, 2019 6:50 pm

Preferably, I would rather apply with a bank than with a specialist lender if possible. How do I qualify with a bank? What are their criteria?

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Otto Dargan
Mortgage Specialist
Posts: 7728
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: I need a home loan provider that can look past defaults from two years ago

Postby Otto Dargan » Wed Jun 05, 2019 7:14 pm

Hi Curtis,

You may qualify with one of our banks if you meet the criteria listed below:
  • No more than $500 in defaults if you’re borrowing up to 95% LVR (Loan to Value Ratio).
  • No more than $1,000 in defaults if you’re borrowing up to 90%.
  • No more than two defaults in total for one application.
  • You must have paid the default at least six months prior to the application.
  • If you’re purchasing a property then you must have at least 5% in genuine savings.
  • No other policy exceptions are allowed.
  • You must have a very good reason for your impaired credit history.
Please note that meeting these criteria doesn’t guarantee that a bank will accept your loan. All applications are assessed on their merits and all banks will credit score your mortgage application.

If you don’t meet the criteria, you can still qualify with a specialist lender. We can then refinance your mortgage to a bank once your credit history is clear of blemishes.

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

Curtis
Posts: 3
Joined: Wed Jun 05, 2019 5:01 pm

Re: I need a home loan provider that can look past defaults from two years ago

Postby Curtis » Wed Jun 05, 2019 8:35 pm

That’s great. So, can you give me a breakdown of current interest rates offered by both the banks and specialist lenders?

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Otto Dargan
Mortgage Specialist
Posts: 7728
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: I need a home loan provider that can look past defaults from two years ago

Postby Otto Dargan » Wed Jun 05, 2019 8:54 pm

Hi Curtis,

You can check out the best home loan interest rates on offer from our panel of almost 40 lenders that includes both rates from both the major banks and specialist lenders.

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

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


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