Home Loan Advice Centre guides you through the entire home buying journey, without charging you for our service. Click here for our 5 minute online enquiry page . We’ll assess your loan options and send you a full report of your capacity.
The amount you can borrow is affected by your income, your deposit, and bank’s serviceabilty criteria which is linked to interest rates, cost of living, and your existing liabilities etc. See our Borrowing Power calculator for a rough estimate.
Home Loan Advice Centre helps borrowers Australia-wide. We specialise in Sydney and NSW and regularly help clients in remote areas and other states. Feel free to contact us on 02-9210-1000 or 1300-729-177 to see how we can help you.
Bad credit loans
Bad credit loans are for borrowers who have had past credit problems which have resulted in an adverse or poor credit rating. The main credit ratings agencies such as Dun and Bradstreet or Equifax may hold adverse items on a borrower’s credit file for up to 5 years dependent on the nature of their previous credit issues. Previous credit problems can include previous missed payments, past defaulted payments, loan arrears, excess credit enquiries, bankruptcy etc.
Your actual credit history will determine your eligibility, the % loan (loan to value ratio) you can expect, and the interest rate available.
If you’re in this group then it’s best to speak to us. We need to go over your situation in detail to see how you fit on the various lender’s credit scores before we can determine how much you can borrow and at what rates.
In order to work out your options accurately, you will need to provide …
- An explanation of the dates and nature of past defaults
- whether defaults have been paid and if so dates of payments
- if any bankruptcy proceedings have taken place.
- A copy of your credit file
If you’re not sure if you have an adverse credit history or not, you can contact Equifax to request a copy of your credit file. See Equifax or Dun and Bradstreet for details on how to request this.
In many situations, your credit history only remains on your file for 5 years from the last date of entry, so it may be possible to arrange a normal loan once this period has elapsed. Also, some lenders are more flexible than others and may still be willing to provide you with standard finance given a reasonable explanation of the circumstances surrounding your credit history.