Buying a home with bad credit?
Debt Fix can help
Getting approved for a home loan if you suffer with a bad credit reputation can seem like a challenge, but there are plenty of lenders out there who may be willing to help you with bad credit home loans. If you've been turned down by the big banks, a bad credit mortgage broker (who specialises in assisting applicants with non-conventional credit histories) could connect you with finance provides that are willing to consider your situation holistically.
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Bad Credit Home Loans and Mortgage Brokers Australia Wide
At Debt Fix, our mortgage brokers specialise in non-conforming loans and we have close relationships with a panel of lenders across Australia. Why not arrange a confidential consultation with one of our advisors today so we can help you to find the best bad credit home loan for your financial situation, with fast approval.
Call 1300 332 834 for a no-obligation assessment or fill in our contact form and we'll get back to you as soon as we can.
Mortgage Brokers for Bad Credit
If you've got bad credit or a low credit score, defaults or other infringements on your credit file, some lenders may see you as a high credit risk and reject your loan application outright. Unlike a lot of Australian mortgage brokers for bad credit, Debt Fix advisors understand that people make mistakes and that lifestyle changes such as divorce or needing to take time off work can take their toll on your finances, so we're always prepared to consider such issues when assisting you in your loan application.
Debt Fix will examine your financial situation and give you the loan options available to you, so you can decide if a mortgage or loan is right for you. Following this, we'll refer your case to our panel of lenders and explain your situation why we think you're a good candidate for a mortgage, despite your credit history.
What is bad credit?
When you apply for a home loan with a finance provider, they will request a copy of your credit report to assess your suitability. This report details your financial history going back several years, both good and bad.
Good credit is built by paying loans and bills on time and other activity that demonstrates you are a reliable borrower. A bad credit history occurs when you have late or missed debt repayments, credit defaults on loans, bankruptcy, debt agreements and other negative information.
Poor credit harms your credit score and your chances of being approved for a loan with a bank. However, non-conforming lenders may be more willing to consider your individual circumstances and offer you a specialised loan product.
What are bad credit home loans?
Also called non-conforming or sub-prime loans, home loans for bad credit may be offered by specialist lenders, or lenders who also offer other non-conforming loans such as bad credit car loans. These mortgages are tailored to your needs and circumstances, to give you the amount you need to borrow with a repayment schedule designed to be affordable within your means.
As a bad credit home loan puts the lender at greater risk, they will usually charge:
- Higher interest rate
- Higher deposit
- Higher fees and penalties
Non-conforming loans may work out more expensive than a standard (conforming) mortgage in the long term; however these loans are usually taken out for the short to medium-term and may be refinanced later if your financial situation improves.
Debt Fix works with many lenders across Australia, so we can find the most affordable and convenient option for you.
Am I eligible for a bad credit mortgage Loan?
If your bad credit mortgage loan application has been refused by a bank or another lender, or you're worried about rejection, there may be a chance of your application being approved by a non-conforming lender.
Debt Fix is committed to helping those people with bad credit find affordable mortgage loans. We'll evaluate your eligibility on a case by case basis, even if you have:
- Late or missed payments on your credit file
- Paid or unpaid defaults
- Mortgage arrears
- Judgements or court writs
- Discharged bankruptcy
- Discharged Part IX Debt Agreement
While non-conforming lenders may be more accepting than banks, you must still meet their eligibility criteria to be considered for a bad credit home loan. This includes being:
- At least 18 years old
- An Australian citizen or permanent resident
- Currently employed or receiving income
Debt Fix will discuss other possibilities for finance, so you can decide whether a bad credit home loan is the right choice for you.
Contact our team to get started with your loan application.
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How do Poor credit home loans work?
Debt Fix's mortgage specialists will guide you through the loan application process to give you the best chance of securing a suitable poor credit home loan having regard for your circumstances. The process is as follows.
1. No obligation assessment
During your consultation with our financial advisors, we'll talk confidentially about your financial situation and find out what you want from a home loan. We'll give you information of how much you'll be able to borrow, what deposit you'll have to pay and what the monthly repayments, interest rate and charges are likely to be, so you can decide whether a non-bank home loan is right for you.
We'll discuss the different types of home loans which are suitable for people with poor credit and recommend the most suitable option for your situation. These can include:
- Default home loans
- Discharged bankruptcy loans
- Discharged part IX debt agreement loans
- Debt consolidation loans to combine multiple debts into a single monthly payment
- Tax debt loans to combine tax debt with your home loan
2. Bad Credit Home Loan application
We'll help you draft your loan application and provide the necessary supporting documentation. We’ll provide you with the options available to you outlining all the benefits and consequences to enable you to make an informed decision.
Following this we'll present your application to the most suitable non-conforming lender. We'll demonstrate to the lender why we believe your application is suitable and appropriate. The finance provider will assess your risk to decide if you're suitable.
Most loan applications are approved within 24-48 hours.
3. Repayments
If you're approved for a bad credit mortgage on terms you're happy with, you'll need to start making regular payments to the lender. Falling behind on your repayments could lead to expensive fees or defaulting on your loan.
4. Refinancing
Non-conforming mortgages are intended to be a temporary measure while your circumstances improve. Keeping up with repayments on your loan will improve your credit score and you could eventually be in a position to refinance your loan for a lower interest rate. Contact Debt Fix to find out when it's the right time to refinance and whether you would benefit.
Call us now on 1300 332 834 for an obligation free quote
Pros and cons of bad credit home mortgage loans
Deciding what kind of bad credit home loan to choose depends on your individual situation. Debt Fix's experts will make sure you know all your options and the benefits and possible risks that come with them so you can make an informed decision.
Advantages of bad credit home loans
- Low requirements – getting a mortgage with bad credit from a bank can be difficult, but non-conforming lenders are more flexible.
- Range of options – Debt Fix works with many lenders all over Australia, so you should have plenty of options to choose from.
- Simple application – we'll help you to complete your application and make sure you have the documents the lender requires.
- Fast approval
- Can be refinanced – if your credit rating improves and you want to change your mortgage, we can help you with bad credit home loan refinance.
Disadvantages of bad credit home loans
- Higher interest rates – non-conforming lenders typically charge higher interest than conventional lenders to offset their risk.
- Higher deposit – some bad credit mortgage lenders charge a 20% deposit that needs to be paid upfront.
- Pay more overall – higher interest and fees can add up over time. However, many borrowers are able to refinance to a lower interest rate after several years.
A bad credit home loan can be a temporary measure until your credit rating improves, meaning you won't have to wait for years to be approved by a bank and get started on your mortgage payments.
Why choose Debt Fix for a bad credit home loan?
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For more than 10 years, Debt Fix's bad credit mortgage brokers have helped Australians with poor credit history and other unique circumstances to access the finance they need. Whatever your financial situation, we aim to take the stress out of financing your next home with a Debt Fix bad credit home loan.
Tailored solutions
As specialists in non-conforming loans, we know that everyone's needs are unique. That's why we'll take the time to research your situation and present you with the best options that match your needs and wants.
Competitive rates
Bad credit mortgage loans can be more expensive than a standard home loan, but with access to a wide range of lenders, we'll help you to find the most cost-effective loan you can comfortably afford. We'll make sure your loan application includes everything it should to maximise your chance of approval.
Certified broker
Contact our team today to talk to one of our advisors about home loans for bad credit.
Call us now on 1300 332 834 for an obligation free quote
Debt Fix is fully compliant and recognised among industry regulators, including NCCP, MFAA and PIPA.
Frequently asked questions about home loans with bad credit
There can be many reasons for a poor credit history, which could lead to loan applications being rejected by some lenders. The most common are:
- Missed payments on a home loan (mortgage arrears)
- Missing payments on other loans, credit cards, bills, tax or other types of debt
- Defaults (missing payments for more than 60 days)
- Bankruptcy or a formal debt agreement
- Judgements, summons or writs related to debt
- Too many credit enquiries in a short space of time
To secure a lower interest home loan in the future, you should take steps to build positive credit and avoid building more negative credit. The first step is understanding what caused your credit problems in the first place.
- Get a free copy of your credit report from one of Australia's credit reporting agencies – Equifax, Experian or illion. Check the report for mistakes and report these to the agency.
- Don't miss any payments on loans, credit cards, household bills or other payments. Making payments on time will raise your credit score.
- Don't apply for multiple loans at the same time. This can make your financial situation look unstable to lenders.
- If you need advice about how to get out of debt or other financial worries, contact Debt Fix for a confidential assessment.
Depending on your individual situation, the type of bad credit you have and the lender, you may be able to borrow between 80% and 100% of the property value as a loan. This means you could have to pay up to 20% of the property as a deposit up front.
Interest rates are typically higher for a non-conforming bad credit home loan, as there is more risk to the lender, but they can vary on a case by case basis. We'll give you an estimate of interest rates so you can decide if you're happy to proceed with the loan application.
All home loan applications involve fees, but these may be higher for a non-conforming loan. These can include establishment and administration fees, legal fees, stamp duty and insurance costs.
You can apply for a bad credit home loan without a guarantor, but having one could improve the chance of success or help you to secure a lower deposit.
