The Australian Mortgage Market has a number of lenders who specialise in mortgages for customers with a bad credit history. Bad Credit Home Loans are also known as Non Conforming Loans.
When you have a bad credit rating, getting a mortgage can be a hassle. The system is set up to protect the lender and the borrower from further risk.
If you are not sure whether you have any credit defaults listed on your credit file, you may wish to obtain your own credit history report from www.mycreditfile.com.au
We understand that sometimes the
May cause an otherwise good credit borrower to fall behind in their payments,
and experience arrears or even defaults.
Generally the Loan to Value ratio (LVR) on on a Bad Credit Loan is lower than that available to regular borrowers with a good credit history. However some lenders are prepared to lend up to 90% of the home value.
While Credit Impaired home loans are generally offered at a slightly higher interest rate and/or fee structure than the comparable "traditional loan", borrowers who take up a Bad Credit Home Loan can generally expect a fully featured loan with options including redraw, line of credit, variable and fixed rates etc.