A bad credit home loan is a type of mortgage that is offered from a non-conforming or specialist lender that can consider all situations, in particular for those with negative entries on their credit file.

The term ‘Bad Credit’ home loan refers to your qualifying criteria. It will not say Bad Credit Home loan on your application or any other documents. Usually the interest rates are a bit higher and you may be able to borrow less of the property value. After a qualifying period, borrows can often switch to a Standard mortgage product with the same bank/lender and remortgage with a different bank.

1) Who is a Bad Credit home loan for?
2) What do the banks consider 'Bad Credit'?
3) How are ‘Non-Conforming ‘lenders different?

Bad Credit Low Doc Loan

If you have a less than perfect credit file and no evidence of your income then most lenders will see you as a high risk and will decline your loan. Thankfully, if you present the right documents then you can get approved.
1) How do I qualify for a low doc loan with bad credit?
2)Will the interest rate be higher?
3) How can I can get the lowest interest rate possible for my circumstances?
4) What are the lending criteria?
5)Does the property/Loan security matter?
6)Does the purpose of the loan matter?

Poor Credit Rating Mortgage

1) What is a credit rating?
2) How can I find out what my credit rating is?
3) What are you using the loan for?
4) Are you applying for a loan on your own?
5) How long have you lived in your current address?
6) How long have you been in your job?
7) How are you employed?
8) How many enquiries are on your credit file in the last 6 months (how many loans have you applied for)?
9) Do you have any credit problems such as judgments or defaults?
10) Have you missed payments on your current debts?
11) How much are you borrowing?
12) What percentage of the property value /LVR are you borrowing?
13) Do you have any genuine savings or shares (gifts are not included)?
14) What is your net asset position (assets minus liabilities) like?
15) How can I get a mortgage with a bad credit rating
16) Do I get a credit rating from Veda?
17)What happens if I don’t have a credit rating?
18) Does making payments on-time improve my credit rating?
19)Does having a bank account with my chosen lender help my credit rating?
20) How can I find out my personal credit score?
21) I failed a lenders credit rating. What does that mean?
22) How can I find out my personal credit score?

Credit Repair

1) What is credit repair?
2) Why is it so important to fix your bad credit?
3) What causes bad credit?
4) What is a Credit Repair Service?
5) How does credit repair improve my credit rating?
6) What entries can be removed from my credit file?

Debt Consolidation Loan

Rolling all your debts into one loan will reduce your repayments and make your life easier by minimizing your repayments and by reducing the number of credit cards and loans you have to keep track of.
1) Can I get a consolidation loan with a bank?
2) How much can I borrow?
3) What are the benefits of debt consolidation?

Equity Loan

The term ‘equity’ simply refers to the difference between the amount you owe on a mortgage and the value of your home.A Home Equity loan is characterized by its flexibility and ease of use, allowing you to use the equity you have built up in your home as collateral security.This type of loan can be used to purchase another property, for renovation purposes, to refinance your mortgage or to invest in shares.
1) Why do banks discourage equity releases?
2) Which banks/lenders do equity loans?
3) What’s the benefit of an Equity Loan?

Home Loan With Defaults

1) How much can I borrow?
2) Can I qet a loan with a bank?
3) What if I don’t qualify with a bank?
4) Is it easy to get a loan with a specialist lender?/Do they accept anyone?
5) Are Low Doc loans for applicants with defaults available?
6) How and what does the lender know about my defaults?
7) What does the term default (on a credit file) mean ?
8) How do lenders view ‘defaults’ on your credit file?
9) How do I successfully apply for a home loans with defaults?
10) Is a default on your credit file different to defaulting on your home loan?
11) Is it possible to hide my defaults from the bank?
12) Does the size (the amount) of the default matter?
13) Paid, Settled, Current, Clearout defaults- What are these?

Loan with Mortgage In Arrears

1) Can I refinance my home loan with mortgage arrears?
2) When is my mortgage in arrears?
3) Missed payment or late payment?
4) How do banks/lenders view current mortgage arrears?
5) How can I refinance if I have mortgage arrears?
6) My current lender is charging me a mortgage arrears rate. What is that?
7) At what point does the bank take serious action?

Tax Debt Mortgage

All Australians are required to lodge a tax return each financial year. However for the self-employed this is a complex and time consuming task, which means it often doesn’t get done on time.

In addition to the delays, many people make mistakes on their tax returns which can come back to bite them years later. And result in a debt with the tax office.

1) Can I refinance my tax debt?
2) Full Doc or Low doc?
3) Has the ATO lodged a caveat on your property?
4) Is the ATO taking legal action against you?
5)Have you made a tax payment arrangement with the ATO?
6) Why do banks have a problem with refinancing tax debts?

Court Write Home Loan

Most banks will refuse applicants with court writs, whether they’re paid or not. Some non-conforming lenders MAY approve your loan but it will depend on a number of criteria.
1) Do I qualify?
2) Can I get a home loan with a bank?

Judgment Home Loan

1) Can I still get a home loan?
2) How and what do lenders know about my court judgement?
3) What does a judgment on my credit file mean to lenders?
4) Paid or unpaid judgements?

Part 9 /IX -Debt Agreement Home Loan

1) Am I still eligible for a home loan?
2) Can I be accepted by a major bank?
3) Can I get a loan if I’m still in a debt agreement?
4) What is a Part 9/IX debt agreement?
5) What are the benefits of a Part 9 /IX agreement?
6) Shall I enter into a debt agreement Part9/ IX?
7) What is a Part IX debt agreement?
8) Do I qualify for a debt agreement?
9) Can the type of debts you have be included in the agreement
10) Can you afford the reduced repayments?
11) How can I enter into a debt agreement?
12) What are the costs?
13) Will this affect my credit file?
14) How do I get a debt agreement?
15) Will a debt agreement impact my job and my income?
16) What happens if I break the debt agreement?
17) What are the benefits of a debt agreement?

Discharged Bankrupt Home Loan

1) Do I qualify for a home loan?
2) Will I have to pay a higher interest rate?
3) Are Low Doc-loans for discharged bankrupt applicants?
4) Can I refinance my current Home Loan?
5) What does the term ‘discharged bankrupt’ mean?

Refinancing a Bad Credit loan

Many people seek a non conforming loan, private loan or specialist lender if they have had a credit problem or if they can’t get a bank to accept their loan. Ultimately a ‘Bad Credit home loan is designed to be a short term solution for between six months to five years depending on your situation and credit history.

When you are eligible to refinance your loan, then you should switch back to a cheaper loan with a major lender such as a bank, building society or credit union and benefit from their lower interest rates.

1) Do I qualify to refinance?
2) What if don’t qualify yet?
3) Why should I refinance a Bad Credit loan?
4) What are the costs involved in switching loans?
5) For how long will banks/lenders know about my past problems?
6) Do the banks know about my past if your credit file with Veda Advantage no longer has any defaults, bankruptcy or part 9 agreements on it?

Refinancing from a Private loan

Private lenders are high net worth individuals or mortgage funds that offer high rate unregulated loans secured by either a second mortgage or a caveat. Typically the private notes were advanced for business purposes and are supposed to be kept for less than a year.Since the interest rates are often 2% to 6% per month (24% to 72% p.a.), it is important that you pay off the loan as soon as possible by selling the property or refinancing the loan. Check your loan contract because there are often high exit fees if the loan is repaid before the term is up. Banks MAY not accept a home loan application if the loan purpose is to refinance a private mortgage. However if you have made your payments on time then we can assist you to refinance to a lender that can consider your situation.

Refinancing a Bluestone Mortgage

Many people are refinancing their current Bluestone home loans to lower interest rates with other lenders.

Bluestone is a non-conforming lender who specialized in helping people with impaired credit histories or who could not prove their full income. Unfortunately during the sub prime crisis they were unable to fund new loans and they withdrew from the market.

1) What are Bluestone’s exit fees?
2) Are Bluestone’s current interest rates competitive?
3) About Bluestone mortgages

Refinancing a Liberty Financial Mortgage

Liberty Financial is a specialist lender that has helped thousands of Australians, who do not meet standard bank criteria, to obtain a home loan. Their common sense approach to lending means that people with an impaired credit history are given a fair go. They were the first non-conforming lender in Australia and are still trading.

Liberty offers an extensive range of loans to suit all kinds of borrowers, and offers competitive home loans to borrowers with a good credit history as well as those who need specialised financial assistance or who have credit blemishes. Their range also includes car loans for consumers and for businesses, commercial property loans, cash flow finance, and floor stock finance for car dealerships.

However most Liberty mortgages are not designed to be used for the long term. For the majority of borrowers the ultimate goal is to refinance their non-conforming loan with a mainstream lender with a lower rate or to refinance to Liberty’s clear credit loan product.

1) What are Liberty’s exit fees / costs?
2) Are Liberty’s current interest rates competitive?
3) About Liberty Financial

Refinancing a Pepper Mortgage

If your credit history is now clear then you may qualify to refinance your Pepper home loan to a major lender.

The majority of Pepper’s borrowers had issues such as:

  • Bankruptcy
  • Part 9/IX debt agreement
  • Numerous defaults on their credit file
  • Limited income evidence (low doc)

If these issues have been resolved and your credit history is clear then lenders will view you as a prime customer. Your repayments with Pepper must have been on time for at least six months, ideally longer.

1) What are Pepper’s exit fees / costs?
2) Are Pepper’s current interest rates competitive?
3) About Pepper Australia

Refinancing a La Trobe Financial loan

La Trobe Financial is a specialist lender that has been operating since 1952 and has been recognized for its innovation and stability through many financial crises.

Their funding model is different to other lenders in that they obtain most of their funds from investors rather than from banks.

La Trobe mortgages are only designed to be short term loans. In many cases La Trobe cannot negotiate significantly reduced interest rates for their borrowers even when their credit history is clear, so in most cases it is best to refinance.

La Trobe mortgages that are NCCP unregulated may be subject to exit fees, please refer to your original loan offer for the full details.

Refinancing a MKM Capital loan

MKM Capital is a specialist lender with its own private funding. This gives MKM the flexibility to have their own lending policies and unique products.

They specialize in lending to people with serious credit impairment that may not be considered by other bad credit lenders. Their loans are usually designed to be kept for between six months and a year before being refinanced.

MKM Capital’s interest rates are significantly higher than the banks. If you can qualify for a bank loan then you should refinance as soon as possible.

Liquidated Company Mortgage

1) Who is this for?
2) Do I qualify for a mortgage?
3) How to prove your income?

Defaults in your company’s name

If you have defaults, court judgements or other adverse listings on the credit file of your company then some lenders will assess you, as the director, as having clear credit. However, if a company that you were a director of has been placed into liquidation then this will remain on your personal credit file. While this is not seen favourably, it is seen in a better light than if you had been bankrupt.  If we can provide evidence of what happened to cause your company to go into liquidation, and that this was a one off event, then we can usually help you to get approved with one of our specialist lenders at a competitive interest rate.
Can I get a mortgage whilst my company is in the process of being liquidated?

Recovery of company debt against the director

If a company is in receivership or liquidation, then in some situations it is possible for the receiver or liquidator to make a claim against the director. However, if the company is in administration then it is not possible to make a claim against the directors without a court order.
1) When is a company ‘insolvent’?
2) What does’ External Administration’ mean?
3) What does Voluntary Administration mean?
4) What does the term ‘ Liquidation’ mean?
5) What does ‘being in receivership’ mean?

Bad Credit Commercial Loan

1) Is it possible to buy a commercial property if you have a bad credit history? Can you consolidate your business debts into a mortgage?
2) What shows on your credit file?
2) Defaults because of business disputes