Your Finance Adviser - Home Loan Expert, Broker in Australia

A bad credit record is a major reason due to which most of the home loan applications get rejected by lenders. People with bad credit record face difficulties in getting loan and have to knock the doors of various financial institutions. However, there are certain ways which can help you to get the  home loan  even if you have no or bad credit history. So, let’s first understand the meaning of bad credit, factors affecting your credit rating and ways to get home loan with bad credit ratings. What is bad credit? In Australia, thousands are people are having bad credit ratings. Bad credit is related to the status of your credit file which has the details about your financial activities and loans. Yours action related to borrowing are observed closely, out of them some give you bad rating and some help to build a good credit record. Your credit rating is very important for the money lenders. They check it before sanctioning your loan and can reject it if the rating is poor.

When you look for loan to buy a home, you come across many terms and conditions set by the lender. Especially, if you have approached a major lender for this purpose, you will have to fulfil their criteria which are slightly difficult in order to get  home loans in Australia  sanctioned. From having a good credit record paying the deposit money, everything needs to be up-to-date. You have to pay 20% your home price as a deposit to the lender. However, as the prices of homes are increasing day by day, this 20% also becomes a big amount to be paid and hence, you don’t wish to pay it. When you try to save this deposit money, you find yourself in more difficult situation. If you don’t have the money to pay deposit, many of the lenders want you to pay the cost of Lenders Mortgage Insurance which is also called LMI. This insurance is to safeguard the lender in case you do default on the repayment. Most of the borrowers don’t wish to pay this money and involve the insurer in the process.

It’s generally perceived that financing a new home is challenging and one of the greatest investments for everyone. If we talk about new home buyers, they can take a hold of low deposit home loans at the competitive  home loan rates . The new buyers have numerous alternatives to consider for their future objectives. Taking benefit of the special programs that suits their need is a very good step in getting the best terms and low mortgage rate on their home loans. Low deposit home loan renders borrowers the opportunity to make an entry in the real estate market rapidly. It gives the benefits of a minimum amount of deposits required, along with other advantages. A deposit amounting to 6.5% of the property value is the bare minimum. It gives borrowers more ability to save up on repayments and other fees while cutting down the time it takes to begin taking the steps to own a home. Can I Secure a home loan up to 98%? If you are a first home buyer and looking to buy a property to l