We have had a few issues that have affected our credit rating but things have turned around and we now have around 20% deposit for a new home. Will our credit rating stop us from getting a new loan and what options do we have?
Congratulations for getting things back on track, to refocus and achieve this milestone is huge!!
The good news is that there will be options that you can consider - despite your credit rating history. The key thing would be what your credit rating is looking like right now.
There are a number of lenders (I generally have three on my panel) that will look at customers with bad credit history (defaults, discharged bankrupts etc) They will simply assess your situation and then risk it accordingly.
The most important thing here will be to get a copy of your credit file before an application is submitted. This will help you and your broker place your loan where it needs to go.
If your credit file is clear then you have all the mainstream lenders to select from (subject to an income assessment of course).
If there is some historical information showing up then this is where the specialist lenders will come in.
I can help you with obtaining your credit file if you need and if you would like more information I'm always happy to help.
I agree with Nicole - you should be very proud that you have been able to turn your financial situation around and save a deposit!
Based on what you have advised it seems to me that you would be able to apply for a home loan (there are quiet a few lenders who will consider loan applications from customers who have had credit issues in the past). As long as you currently have the financial capacity to repay the loan - ie regular employment and income then I suggest you should definitely talk to a mortgage broker to discuss your options.
Robyn, if you would like to look at your options please feel free to contact me - it would be great to help your achieve your goal.
Great to hear you’ve turned things around!
There are quite a few lenders who understand people experience some bumps in their journey. Depending on the extent of the bumps, pricing is also competitive due to the number of lenders competing in this space.
A 20% deposit is also great start. A sizeable deposit like yours certainly opens up the number of options available to you.
I’d be more than happy to have a chat, any excuse to make my way to the coffee capital is a good one.
Have a great day,
Sorry for getting here a bit later :)
Just wanted to add that you should definitely be proud of your achievement!
In order to access your credit file you can use Veda Advantage and apply for it online, it doesn't cost for you to be able to complete it online but you will need to have your ID documents certified (i.e. get a Justice of the Peace) to sign off on them to say it is you. They then will be able to either post or email (I believe) your report straight to you.
Depending on the type of credit issues you have faced and how long ago they were listed on your credit file and also when they were paid off will determine if there will be an issue with being able to access finance - either through a mainstream lender or one of the specialised lenders. Even if you do need to utilise the services of a specialised lender who may have a higher interest rate, these are usually only used for a short-term (between 6 months to 2 years) and then there would be the look to transition your loan into a standard loan.
I hope that all makes sense! Please give me a call on 0430 351 242 and I can walk you through your options.
Depends on the timing, type of credit issue and the amount. Generally under 80% lending will be more flexible. Check out your Veda report and speak to a broker, you need to get specific with these sort of things but you still have options.