Bad Credit is all too common in Australia today. It ranges from a minor paid default, to bankruptcy. No matter how small or significant is your default, you will find that mainstream lenders will not be able to assist with a home loan.
There is a specialist range of lenders in Australia called, Non Conforming Lenders, they specialise in providing finance for people who do not meet the lending requirements of banks. Bad Credit applicants fall into this category.
To qualify for a bad credit home loan, there are 2 key specific requirements that are not present with clean credit home loans:
- Applicants must have at least 20% deposit (as well as funds to cover purchasing costs);
- Applicants must have no unpaid defaults or outstanding judgements, part 9 agreements at time of settlement.
Every day we receive inquiries from bad credit applicants looking for a home loan with only the FHOG as a deposit. No lender in Australia will be able to assist bad credit home buyers without a sizable deposit. Guarantors can help out if your income is low, but not if you do not have a deposit.
Given that lenders do not offer bad credit home loans beyond 80% of the value of the property , unless you have the balance of funds, you will not qualify for a home loan