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Bad Credit Home Loans

A bad credit home loan is just a regular mortgage with higher interest rates & fees when compared to a normal loan. Depending on the severity of your credit history, the interest rate is usually about 2% - 6% higher than the major banks' current rates.

Our generally accepted criteria for bad credit home loans...

With a 20% deposit and the right house, our bad credit brokers can usually work with almost any severity of poor credit history: bankrupt (current or discharged), unlimited arrears, defaults or judgements. The most important thing is that we can show that your credit history is history. We'll need to be able to put together a case to convince the lender that it won't happen again.

Bad Credit Home Loan Brisbane
Credit history where we can usually do a 10% deposit:
Default(s) under $2,000.
Defaults over $2,000 but paid over 12 months ago.
Discharged bankrupt
One or two minor late payments within 6 months.
What you should expect for your home loan:
Interest rates roughly 2% higher than the big banks at 90% LVR.
Interest rates roughly 1% higher than the big banks at 70% LVR.
Risk fee of 1.50% at 90% LVR- this replaces LMI.
Fee waived with at 70% LVR.
Credit history where we usually need a 15%-20% deposit:
Unpaid default(s)/judgements over $2k.
Mortgage arrears >1 in the last 6 months.
Current bankrupt
What you should expect for your home loan:
Interest rates roughly 5% higher than the big banks at 85% LVR.
Interest rates roughly 3.50% higher than the big banks at 70% LVR.
Risk fee of 1.25% at 90% LVR- this replaces LMI.
Fee waived with at 70% LVR.

The above should be a guideline only - but is generally a good starting point. We have a large number of lenders that can help with bad credit home loans, so it's best to discuss with us. We have limited lenders that will do home loans for people with poor credit at 90% LVR, so it's ideal if you have a 20% deposit - but we're happy to work with what you've got.

What else is different/restrictive about bad credit home loans

Because bad credit home loans are provided by smaller lenders, they usually have a few other nuances: