Bad Credit Home Loans allow you to borrow up to 95% of the purchase price in high population areas.  Furthermore you can refinance a home loan with bad credit to 90% of property value including debt consolidation.

When purchasing at 95% LVR you’ll require funds of 5% deposit, stamp duty and risk fees & loan costs. High LVR’s of 95% are only available in high population areas such as Capital Cities or Major Regional Towns.

Lastly due to the higher risk factor on vacant land and construction, many lenders do not offer bad credit loans. However we do have a bad credit funder that will lend up to 80% lvr on Vacant Land and Up to 95% on Construction in high population areas.

1. $900,000 (Syd or Melb) $750,000 (other) to 95% of Property Value
2. $1,000,000 to 90% of Property Value
3. $1,000,000 to 85% of Property Value
4. $1,750,000 to 80% of Property Value
5. $2,000,000 (Syd or Melb) $1,750,000 (other) to 75% of Property Value
6. $2,500,000 to 70% of Property Value (Large Loan Limits available, $2.5M to $5M case by case and subject to location)

You can get a bad credit home loan with defaults if:

1. Minor defaults up to $500 can usually be accepted by some banks and lenders up to 95% of property value.  For example Telcos and non financial defaults.
2. For Paid or Unpaid defaults, Judgements, Writs & Summons you will need to obtain finance from a Bad Credit Lender.

You are able to apply for a bad credit home loan once you are one day discharged from Bankruptcy.  If in a Part 9 agreement you can apply once you have completed the agreement.

For more information visit our discharged bankrupt page or complete our assessment form.

Home loan arrears are very serious as this could result in the funder re-possessing your house.  People generally find themselves in this financial situation due to one off life circumstances.  Example’s may be illness, loss of employment, divorce etc.  However now they have the potential to pay the repayments of their loan on time but can’t catch up.

It is extremely important that you contact your lender and alert them of any difficulties you may be having.  Finally most mortgages that go into arrears get back on track with the lenders assistance.

What to do if Arrears are Serious?

Where the problem is more serious try to refinance your mortgage with a Bad Credit Mortgage Broker.

Specialist Mortgage Broker Non Conforming Loans will assist home owners by refinancing their debts and arrears into a new mortgage. You will need to have the required equity in your home and sufficient income to qualify for a refinance.  Then this may just be the best solution for you.

Your current lender will not wait for their mortgage repayments forever. You will need to move quickly before your current lender takes action to sell your home.

In some instances applicants hold off until their credit file is clear and they are eligible for a prime loan. However, they will incur opportunity costs.  This is the costs of delaying a purchase and missing out on the opportunity. Importantly such costs can far outnumber the benefits of obtaining a home loan now.

Credit scores are numerical representations of an individual’s creditworthiness, calculated based on their credit history and financial behavior. With Equifax these scores generally range from 0 to 1,200, with higher scores indicating a lower risk to lenders. Understanding credit scores is crucial, as they play a significant role in determining your eligibility for loans and the terms associated with them. Lenders often rely on these scores to assess how likely you are to repay the borrowed amount, making them an essential component of the lending process.

Equifax employs a sophisticated algorithm to calculate credit scores, taking into consideration various financial factors. The primary elements that contribute to your Equifax credit score include your payment history, credit utilization, length of credit history, types of credit in use, and new credit inquiries. Each of these factors carries a different weight in the overall calculation, making it essential to understand how they interact to influence your score.

Payment history is one of the most significant factors, accounting for approximately 35% of your score. Lenders want to see a consistent track record of on-time payments, as this indicates reliability. In contrast, late payments or defaults can severely impact your score. Credit utilization, which measures how much of your available credit you are using, accounts for about 30% of your score. Keeping your utilization below 30% is typically recommended to maintain a healthy score.

The length of your credit history contributes around 15% to your Equifax score, with longer histories generally viewed more favorably by lenders. Additionally, the types of credit you have—such as revolving accounts like credit cards and installment loans like personal loans—also play a role, accounting for about 10% of your score. Finally, new credit inquiries, which can indicate a higher risk if you are applying for multiple loans in a short period, account for approximately 10%. Understanding these components can help you take informed actions to improve your credit score effectively.

Bad credit home loans are often seen as a stepping stone to help individuals get back on track.  Then after your credit file is clear and a period of solid repayments these loans can be refinanced.

As a general rule, poor credit home loans are priced based on:

1. 1. Age of credit history defaults listed on the applicants credit report (moreover the older the better).
   2. Whether or not the defaults and judgments are finally paid, settled or unpaid at the time of application.
   3. Nature and type of the credit defaults or judgments.
   4. Lastly the LVR (the lower the loan to value ratio, the lower the risk to the lender)

If you still have doubts regarding your ability to obtain a Bad Credit Home Loan talk to an experienced mortgage broker.

Moreover Non Conforming Loans has the experience in dealing with bad credit mortgages on a regular daily basis.

Call the National Debt Helpline on 1800 007 007 if you do not have a lending solution. Their professional financial counsellors provide free and confidential advice. Equally important their helpline is open from 9:30 am to 4:30 pm, Monday to Friday.

Lastly you can also visit the National Debt Helpline website. It has step-by-step guides explaining how to fix common debt problems.