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Bad Credit Loans, Bad Credit Mortgages
What Are Your Options?

If you have Bad Credit, finding a good Australian non-conforming home-loan deal, can be a challenge. There is talk in the media of predatory lenders who are prepared to lend to anyone but charge accordingly. Naturally you need to be careful and do your homework before applying.

It is really quite simple, the rate you will be charged will depend on your available deposit or equity in the property and the significance of your defaults. Therefore before doing any research, please make sure that you have your credit report on hand.

Some lenders on our panel offer Bad Credit Mortgage rates below the current Bank Standard Variable rate – however you can not borrow more than 80% of the value of your property. Others will lend you 95%, however you will end up paying astronomical rates for the privilege.

There is no such thing as a free lunch. Therefore if you are currently not a home owner, have a history of bad credit and a number of unsecured debts, debt consolidation via a mortgage is highly unlikely. You must have remaining equity after you consolidate of 20% in order to qualify for a reasonable mortgage. If you have outstanding debts galore you first need to clear these before committing to a home loan.
 

Don’t Lose Your Home Due To Mortgage Arrears

Failing to meet home loan repayments could see you lose your house. Basically your lender has the right to sell your house if you fall behind in repayments; fail to make up the repayments within a specified time frame after receiving default notices; and don’t have a defence for doing so.  According to statistics, it is the low-doc and non-conforming borrowers who are getting into trouble with their mortgage. Around 7 per cent of low-doc home loans in Australia are in arrears.  read more>>
 

Low Doc is Big Business

Low Documentation Home Loans are a growing business in Australia. In fact just over $8billion in Low Doc Loans were written during 2006. Low Doc Home Loans were designed for self-employed or those with irregular income. Today, such loans make up around 7% of the Australian home loan market. With low-doc loans, borrowers are able to self-certify their income in the home loan application process. read more>>

Mortgage Defaults - a real issue in NSW

Mortgage defaults in regional NSW have gone up by nearly 60 per cent in the past financial year. According to Veda Advantage, regional NSW has experienced a 35.5 per cent rise in defaults across credit card debt, personal loans and mortgages. This information was collated from over 14million credit files held by Veda Advantage. It clearly highlighted the divide between regional and city suburbs. In parts of regional NSW, defaults rose by as much as 77.2per cent. read more>>

Finance articles:

1. Mortgage Refinance– What is In it For You?

2. Fighting the Debt Demons