Bad Credit Home Loans

Are you being rejected by the banks due to black marks on your credit file? Here’s what you can do to get your home loan approved.

When you apply for a home loan, lenders will always check your credit file. Your credit report is basically a history of your financial activity. It’s one of the main factors in determining whether the banks will even consider your home loan.

Bad credit home loans are a type of mortgage designed for individuals with a poor credit history. Typically, borrowers with a low credit score or a bankruptcy in their past struggle to qualify for a home loan. Importantly,  Bad credit home loans offer these individuals an alternative option to obtain financing for a home purchase.

So what is considered to be ‘bad credit’?

Well, it means things like missed repayments on your debts, previous bankruptcy or a Part IX agreement, adverse listings on your credit file such as defaults, judgements or court writs, unpaid bills or taxes, or just having too many enquiries on your credit file.

However, because borrowers with bad credit are seen as higher-risk borrowers, lenders may charge higher interest rates, require a larger down payment, or ask for additional collateral to secure the loan. The terms and conditions of a bad credit home loan may be less favorable than those of a traditional mortgage. It’s important for borrowers to consider their options before deciding to pursue a bad credit home loan.

Whether it’s a default, arrears, writs, bankruptcy, or part 9, there are still options with bad credit home loans.

This product is suitable for Purchases, refinance of both Owner Occupied and/or Investment Property.  Available to PAYG applicants that have been in the same job for at least 6 months. Self Employed require 2 years of lodged financials. Both investment and owner-occupied loans have similar features, fees and charges, although interest rates may vary.

• Suitable for Purchase or refinance and debt consolidation of owner-occupied and/or investment
• Cash out available to 90% LVR
• Unlimited defaults or judgements  (paid or unpaid accepted)
• Discharged from bankruptcy or Part 9 arrangement (1 day accepted)
• Vacant land to 80% LVR and Construction to 95% of completed value.
• Late payments accepted including arrears on mortgage allowed within last 6 months (penalty rate applies for each month in arrears)

Minimum & Maximum Loan Amount on Bad Credit Home Loans

1. $900,000 (Syd or Melb) $750,000 (other) to 95% of Property Value
2. $1,000,000 to 90% of Property Value
3. $1,000,000 to 85% of Property Value
4. $1,750,000 to 80% of Property Value
5. $2,000,000 (Syd or Melb) $1,750,000 (other) to 75% of Property Value
6. $2,500,000 to 70% of Property Value

Acceptable Securities

• Detached and semi-detached dwelling, apartment, unit, townhouse, villa, duplex in cat 1  > 4 Locations.
• Residential & rural residential securities in Metro, Non-Metro and Inner City locations where House / Land size is 25 acres = 10 Hectares (rural residential).
• Up to 2 units on one title for a home loan with bad credit.

Income documentation

• (PAYG) Last 2 pay slips plus one of the following: Letter of employment, Tax assessment notice, Latest income statement from MYGOV website or 3 months bank statements.
• (SELF EMPLOYED) 2 years tax returns for Companies and last 2 personal returns for sole traders and tax assessment notices minimum 2 years ABN registration.

Does this mean that you will be stuck with paying a high interest rate for the life of the loan?

Not necessarily, our loans are a vehicle to get you into a home. Once your credit file becomes clear, you will be able to refinance to a more competitive rate.

Standard Features & Versatility