YES! Credit Impaired People can get a Home Loan!
The number of lenders is often limited to a few and some different rules apply but it can be done. We’ve been doing it since 2001 & have won a number of awards for it.
There are several lenders in Australia who do home loans for people with bad credit or unusual circumstance that fall outside the mainstream criteria. Each one specialises in a certain area of has a particular preference.
There’s one lender who prefers older credit problems, another who likes ex-bankrupts, a couple who still do self-employed lo-doc home loans, another who prefers more recent paid defaults, another that likes problems to be over 2 years ago etc. etc.
YES, WE GET THESE LOANS APPROVED ON A REGULAR BASIS!
These lenders are SPECIFICALLY here to do these sorts of home loans. What’s the catch I hear you say? It’s simple, they charge a higher interest rate than mainstream lenders. How much higher will depend on what the credit issue was and which lender is available in your situation.
The higher interest rates on these sorts of loans don’t last forever. Some lenders reduce them year by year as you show a good repayment history and the others we usually refinance out to mainstream lenders when your credit history becomes clear or your situation changes to allow it. So don’t worry, it’s not forever.
The WILL NOT do personal loans or credit cards & we’re not aware of anyone who will since the Global Financial Crisis so please don’t ask. We can only do HOME LOANS.
The credit impaired home loan lenders can lend up to 90% of the value of the property however that is a maximum percentage and it may be lower depending on where the property is and what the credit impairment is, but you do require a deposit if you’re buying or equity if you want to refinance.
There are NO 100% home loans available at the moment. You need a deposit. How much will depend on your situation?
There are also costs that need to be taken into consideration, particularly if you’re buying e.g. stamp duty, legal fees, lenders fees etc.
To discuss your situation and find out what’s possible for YOU, call now on 1300 139 883
At ‘Bank Said No’ we specialise in Home Loans and Mortgages Australia Wide.
In most home loan cases, we deal with average people who just walked into the wrong bank. In other cases, we help people get a home loan who has credit problems, mortgage arrears, self-employed people, and ex bankrupts. There are many reasons why banks, building societies, and credit unions knock back applications for home loans. But they will generally fall under one of the following groups:
- Credit history – To get a loan through a mainstream lender you generally need to show a good credit history. This includes your credit report which will show any defaults, judgments, writs, bankruptcies, and others. It also shows when you have applied for credit in the past 5 (although not the outcome) and will give an indication to the lender of your credit pattern. This is sometimes referred to as credit scoring. Refinancing will also take into account your statement history and in-home loan arrears in particular. If your home loan is in arrears, you may still be able to get a loan!
- Employment – Lenders want stable employment histories so that you have a better chance of keeping your job and paying the loan. There are all sorts of interpretations of “stable” and some lenders require you to be in your job for longer than others. Self-employed people generally need to in the same business for 2 years before a mainstream lender will look at them.
- Serviceability – The law requires that you have to prove you can afford the loan without financial hardship, whether that’s on wages or self-employed. It’s not your opinion of whether you can or not, it’s the lenders’ opinion and they use the lenders’ calculators to determine whether you can or not. All lenders have subtly different calculators so what might not work with one, may work with another.
- Security – lenders like properties that are easy to sell if your loan goes bad for whatever reason. So the more unusual the property or zoning or even if it’s in a small town in the middle of nowhere the harder it is to get finance on. Sometimes the property can be just too big. In acreage areas, anything over 25 acres could be a challenge. Properties in a poor state of repair or half-constructed are some of the ones the banks particularly don’t like.
THERE ARE SPECIALIST LENDERS THAT CAN HELP!
We have been providing home loans to credit-impaired people since 2001 and we have tried to find lenders who will do almost any scenario or situation. If you can think of it, we’ve probably already done it; prevented foreclosures, financed ex-bankrupts, credit impaired self-employed people with no proof of income, people on pension only incomes, purchase of a half-constructed house by a credit-impaired self-employed person with no proof of income, etc.
Call us on 1300 139 883 to talk to an expert and let’s find a solution to your situation.
Alternatively, you can email your questions to email@example.com or fill in the email inquiry form.