Home Loans with Bad Credit
Home loans require a significant amount of time. Dedicated to finding the right home loan for you, borrowers need to set aside time for filling out application forms, and for gathering multiple documents as evidence of your credit history. Unfortunately, things can get even more time consuming if you are looking for a home loan with bad credit. However, rest assured that there are many lenders who will still provide home loans regardless of your credit history.
Top tips for getting home loans with bad credit:
Research the system that lenders use to assess home loan applications. It can be incredibly frustrating, for those people who have a bad credit history simply because they are self employed or perhaps a new resident in Australia, when companies use a computer based system which simply generates a credit score. Finding a lender who will allow you to speak to a real person and explain your circumstances and talk through your options may produce a very different result
If you have a bad credit history due to poor financial management or major ‘black marks’ such as bankruptcy, try to gather as much evidence as possible to show that you are now back on track. By demonstrating things like an improved budgeting system, a new capacity to save each month, or a high, regular income from a stable job, you may well be able to win back the faith of the lender in your ability to pay back your new loan.
There are specialist lenders who deal with those who have been rejected repeatedly from more mainstream loan providers. Although these may offer a good solution to people struggling to get a loan elsewhere. always approach these lenders with a degree of caution as their interest rates are usually much higher so take your time to double check that you will be able to pay back the loan on time.
Norman
Hi,is it possible to get a bad credit home loan(first home buyer) 100% financed ?
Could i get one ? I have a few marks against my name my partner is ex bank rupt over 10 yrs ago.
We have made mistakes and made wrong choices, currently renting i keep thinking why can’t i pay that towards my own home ? At the moment i have personal loan through bank,think i was just lucky for that.
Any way really comes a time when your just fed up in having to move all the time and paying for someone else’s mortgage about 1400 a month.
So just want to know if i have any hope at all ? Because we just want our kids to be settled and not be uprooted all the time.
Thanks Norm
Angela Monroe
Hi Norman, it is possible to purchase a home even if you have made some financial mistakes. We have some lenders who understand that these things happen. You will usually get a higher interest rate at first, with the ability to refinance your loan to a better option once you make steady repayments.
If you’d like some more information, you can complete a form here and get some advice from one of our mortgage brokers about what your options are, or how you can prepare to purchase a home by saving a deposit.