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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.
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