Home Loans for Bad Credit in Australia
- Author Ray Ethell
- Published November 7, 2022
- Word count 544
There are numerous reasons why people get turned down for a home loan by mainstream lenders credit providers. You may not realise that one of the most common reasons is paying a bill late or defaulting on a loan prepayment. Other reasons include having a part 9 debt agreement against you, a bankruptcy listing, a late repayment on a credit card or a loan or having court judgement’s against you. Do not dispair as non conforming home loans can give people who have bad credit history the option to buy or refinance a property and rebuild their credit standing.
How do I know if I’ve Bad Credit?
You will require a Bad Credit Home Loan if:
You have a Part 9 Debt Agreement against you
You have a Bankruptcy registered in your name
You have Court Judgement’s against you, or
You have missed credit card, loan or mortgage payments
You should also try and avoid making lots of inquiries for credit as these inquiries will give you a low credit score and will also affect your credit rating.
Bad Credit Home Loans by Specialist Lenders
Fortunately there are a number of specialised lenders / credit providers that specialise in non-conforming home loans.
Specialist lenders / credit providers are concerned about responsible lending (making sure you can make the repayments and thereby avoid more bad debts), and also that you concentrate in” rebuilding” and” repairing” your credit standing.
A Non Conforming Lender will:
Assess each applicant on a case – by – case base
Consider your capacity to repay the non-conforming bad credit home loan rather than just look at your history
Assess when and why your credit problem passed
Assess who you defaulted against and what has happed since, and
Consider your explanation as to the reason of your bad credit
What is a Non-Conforming Home Loan?
Non-conforming home loans are the same as regular home loans. But, owing to the risk involved, you’ll most probably have to pay an increased interest rate.
The Criteria to Get a Non-Conforming Home Loan
You shouldn’t be discharged by at least 1 day from bankruptcy or a part 9 creditor agreement
You need to put together a minimal deposit of 10 per cent (or have 10 per cent equity in the property that you want to refinance). The maximumnon-conforming home loan is 95 per cent of the property value. still, any First Home Owner Grant( FHOG) that’s available to you’ll form part of your deposit
You should have sufficient ongoing income to service the loan repayments.
Acceptance and Documentation
The main documents that will help in determining your acceptance by the specialist bad credit lenders credit providers will be
Your evidence of income
Your secure and employment, and
Your evidence of recent loan or mortgage repayments
Seek Expert Advice
You’ll find it useful to seek expert and specialist advice from a professionally Specialist Finance Broker who has a knowledge of the credit programs and standard conditions for non-conforming home loans. A specialist bad credit finance broker will give you unprejudiced advice on non-conforming home loan available.
So, don’t worry if you have bad credit history and want to buy a house of your dreams, communicate a special lender / credit provider and make it a reality with non-conforming home loan.
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