We regularly have clients call us to help with with a very difficult loan that they can’t get financed through the banks.

In many cases, it’s because they have a combination of too many credit issues.

What is a credit issue?

A “credit issue” is not necessarily a problem with your credit file.

It is something that the credit department of a bank is likely to consider a problem or it is something that is not standard.

For example the credit department of the banks will consider the following to be credit issues:

The list of potential credit issues is practically endless! There are many aspects of your application which you may consider to be normal that are actually a concern to the bank.

What is a non-standard loan?

A “non-standard” loan is any loan type that is uncommon, complex and does not get processed by the bank using their normal procedure.

The banks would consider these transactions to be non-standard:

  • Buying a property in a trust or SMSF.
  • Applying for a construction loan.
  • Requesting a 10 year interest only period.
  • Buying a property together with three of your friends.
  • Buying a property with the support of a guarantor.

Do you need help with a tricky application? Call us on 1300 889 743 or enquire online and one of our mortgage brokers can help to get your loan approved.

Why is having multiple issues a problem?

The problem with having multiple credit issues or a non-standard loan with credit issues is that there is often no lender that can accept your situation.

If there is just one or two issues then normally at least one or two of our lenders can potentially help you. However when the issues are combined there are often no options.

For example, if you are buying a property in a mining town then we would have many lenders to choose from. However if you were also buying the property in a hybrid trust and you were working in a casual job then we would not be able to help you.

This is because we have lenders that can help people working in a casual job and we have lenders that accept properties in mining towns as security, however none of our lenders will do both!

Keep it simple to get approved

The old saying “keep it simple” is especially true when it comes to applying for a home loan. Modern day banks should really be thought of as a factory that handles paperwork. If anything is “outside of the box” then they find it very difficult to help.

The goal of the banks isn’t to be all things to all people. The goal of the banks is to be as efficient as possible to service the mass market. If you have a complex situation then they cannot assist you and remain profitable with their low margins.

If you want your loan approved then you should try to eliminate as many credit issues as possible before applying for a loan.

How can we help?

As specialist mortgage brokers we have an in depth understanding of each bank’s lending criteria, risk appetite and systems. So we know which credit issues are not a problem for each bank.

If you discuss your situation with us up front then we can confirm if we can help you to get approved without changing your situation or we can let you know which specific parts of your situation need to be changed.

If you aren’t yet ready to buy a property then we can complete an assessment of your situation using our prepare to buy program.

Please call us on 1300 889 743 or enquire online and one of our mortgage brokers can give you feedback on your situation.

  • Robbie M

    Hi, can’t I just get my credit repaired before applying for a home loan?

  • Hi Robbie,

    Yes, you can get your credit repaired but you’ll only be removing disputable, unfair or contestable listing from your credit file. This drops down the total number of credit issues on your loan application but other issues such as employment status and property location will remain the same. You can check out the credit repair page for more info.

  • resnick

    I’m here on a temporary work visa but am planning on applying for a PR soon. My credit score is low because I don’t have a credit history and I’ve just changed jobs (same industry) but I’m being paid much better now. What are your thoughts of me getting a mortgage?

  • Hey resnick,

    Well, you may be able to get a mortgage despite all that but it can be a much better deal if you can wait until you secure your PR. This way, you have enough time in your new job and you can work to build a good credit score in the meantime too. However, if you’re thinking of getting a home loan soon then please call 1300 889 743 to speak with one of us to find out what offers are available and whether you qualify.

  • Liam92

    It seems I’ll have to go for a specialist lender loan as I have no other choice right now. What’s the plan after I get the loan? I don’t want to be paying a higher rate for long…

  • Hi Liam92, when there’s no other option but to go with a specialist lender, as is your case, our mortgage brokers make sure that our clients secure the loan and then keep track of the loan. They then find a suitable standard lender to refinance to as soon as it seems that our clients can qualify. Please call 1300 889 743 if you’d like to speak with one of our non-conforming lender specialists about this.

  • Newton

    What would the bank think of me going for a bit specialised type of property in a small town? Will it be outright declined or is there a chance to get approved?

  • Well this would depend on where exactly the property is located and how specialised it is. Based on the risk of the location according to the specific lender’s postcode guide and the amount of comparable sales / saleability of the property, you may be able to get approval though generally, you may have to borrow at a lower LVR. If both those factors show a high risk to the lender then it’s likely your loan application will be declined. Still, there may be some non-bank, specialist lenders that may be able to help.

  • J Au.

    If I do go for a specialist lender right now and assuming no other lender is willing to give me the deal I like because of my credit issues, when exactly will I be able to qualify to refinance to a major bank / standard lender?

  • You’re eligible to refinance out of a non-conforming loan once you meet standard bank criteria. This generally means that you owe 80% or less of your property’s value (up to 90% can possibly be considered). All of your defaults must be paid and are no longer showing on your credit file. You must have full income evidence although low doc loans may be available in some cases. Note that you must have made all of your repayments on time in the last 6 months as well. You can learn more about this here: