How to get a Home Loan if Your Partner Has Bad Credit

By Angela Monroe - August 13, 2018

How to get a mortgage if your partner has bad credit

It can be a daunting prospect for anyone to face getting a mortgage. It’s a big decision and buying a home is a big commitment. It’s understandable that you may feel even more concerned if your partner has bad credit. You may be wondering how this will affect you both and whether it will even be possible to get a mortgage if your partner has bad credit.

Don’t panic; it’s still possible to get a home loan if your partner has bad credit. There’s no denying it could be a bit more complicated, but it can happen and you can get that home of your dreams. Find out how we can help you with bad credit home loans.

How does your partner’s bad credit impact your chances?

When you become an official partnership you’ll need to understand that each of your individual credit history’s will have an impact on the other.

This is especially relevant when you apply for a home loan together (probably one of the biggest purchases you’ll make). Any lender will look at both partner’s financial history and, unfortunately, if one of them is bad, it can have an impact on their overall decision.

What you should consider

Understand your situation

It’s important to really understand why your partner has bad credit. Is it from a major event like a bankruptcy or is it simply a matter of minimal credit record or one missed payment once upon a time? Take the time to understand exactly where the problem lies and we can help you to find the right lender who will understand how best to help you both.

Borrow less

Work out whether there’s any way you can reduce the amount of the mortgage that you are asking for from a lender. Putting a larger deposit down or borrowing less money could end up being the price you pay for your partner’s bad credit. You’ll often have a lot more luck asking for a smaller amount of money from a lender.

Be aware of interest rates

Generally, if your partner has bad credit, a lender will offer you a loan that has higher rates and fees attached to it. This is because lending to you is higher risk to them than if they were to lend to someone with a good credit history. Make sure you’re aware of the extra costs this will add in the long-term.

Time your application

Although most people get a mortgage approved as quickly as possible, there are certain timings you can consider which will help things go smoothly. Make sure that both you and your partner’s credit history are in the best state that they can be – this may involve delaying your application until outstanding loans have been paid off or credit cards have been closed.

Ask for help

Have a think about whether you have any close friends or family members who may be able to help you with some part of the overall cost you need for your dream home. Again, this lowers the amount of money you’ll be asking for from a lender and could allow you to get a home loan if your partner has bad credit.

How to get a good mortgage if your partner has bad credit

The most important thing when trying to get a good mortgage when your partner has bad credit is to find the right lender. We have years of experience helping people with bad credit get home loans, so we have access to lenders who deal with these type of situations every day. Many of the traditional banks will simply say no before hearing the details about your circumstances, but rest assured there are many lenders out there who are prepared to listen.

There’s always the option of taking on the mortgage alone if you want to get a good mortgage when your partner has bad credit. If you do decide to do this, speak to us first and be wary of the risks involved – it’s a big thing to take on by yourself and you’ll need to be certain that you can deal with it financially.

It’s also worth thinking about what evidence you can provide to a lender to show you are now a financially stable partnership. Depending on the nature of your partner’s bad credit, it could be possible that you now have a good income, stable jobs, and proof of regular repayments of a similar nature. Use this as evidence and the right lender will take the time to consider it.

Ask the experts

We’re here to help and we work exclusively with people who have bad credit. We want to help you make your dream home a reality so get in touch today to find out how we can help you get a bad credit home loan

Angela Monroe
Angela Monroe is the Community Manager at The Positive Group, specialising in giving people the information that they need when they need it, and putting you on the path to a fair financial future. She has 8 years of experience in helping Australians find the right finance solutions, and regularly contributes articles to empower Australians with the knowledge they need to become financially healthy.


Belinda Picone

September 11, 2018

Good Afternoon,

I was wondering if a team member could possibly call me on 0490 753 151 after 4pm this afternoon and have a discussion with me regarding what solution could possibly work for me and my family

Thank You


Angela Monroe

September 11, 2018

HI Belinda, thanks for reaching out. We’ll get someone to call you up shortly to have a chat about how we could potentially help you and your family out.


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