We have been renting for over a year and found a property we would like to make an offer for around $1.2M. We would only need to borrow $650,000 but have had a few credit issues in the past and sold our previous home to clear all the debts …. the credit report is not clean. We both work full time and would like to know if we could still get a loan and what the rate might be?
The specialist space is very much a case by case basis. Depending on the strength of the deal and yours is quite strong from the LVR angle, you may actually be better off going with a Big 4 bank as they will accept more risk than a subsidiary or regional lender will, at much better rates than a typical credit impaired deal.
I would suggest that you don’t make an offer until you have been fully assessed.
You need to meet with a broker and put everything, including the credit issues, on the table and work out your strategy from there.
If you would like to discuss further, I am happy to answer any direct questions that you have and help provide some guidance
Agree with the other responses. It is very much a case by case basis so in order to determine your options, rates etc. would be dependent on finding out further information about your credit history/issues. I've recently had success with a one whereby because the rest of the scenario was strong so we were able to attain a great rate.
If you need any help let me know.
Graham Doessel - CEO - MyCRA (Specialist Credit Repair) Lawyers (LPH)
Current Rating: 4.65 / 5
Everything said by Damian, Scott and Abby is 100% correct and to get you a loan with Bad Credit is a very individual assessment, which could see you paying double the interest on your home loan, as compared to having a clean credit rating.
One smart option might be to have MyCRA (Specialist Credit Repair) Lawyers take a look and remove the bad credit from your credit report, thus allowing you to access better quality finance options, and at much better rates and terms.
Full disclosure, I own MyCRA (Specialist Credit Repair) Lawyers and as you've made the enquiry here on SimplyAskIt, I am happy to have a look at your credit reports personally, let you know where you stand, explain what everything on the credit file means, and reveal the options you have including anything that may not be a problem at all...
If you'd like to chat further about your credit rating, please call my offices on 1300 667 218 and ask to speak to me personally (Mention SimplyAskIt) and I'll either take the call or call you right back.
Once you know your options, you can then discuss your mortgage strategy more confidently with any or all of the amazing finance professionals above.
I hope that gives you a little more comfort Sophie. Please call me for a quick chat (no charge of course)