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Ask an expert: I've got bad credit, can I still get a home loan?

I’ve spoken to so many customers who’ve had black marks on their credit files and issues with their credit history that they weren’t even aware of.

What a lot of people don’t know is that overdue or missed payments on a credit card, home loan or other types of loans can show up as black marks on your credit file. They’re also unaware that such marks could ultimately lead a lender to decline a loan application.

While certain lenders may turn you down outright for having a tarnished credit history, others may offer you a non-conforming home loan as an alternative. Such loans are ideal if you don’t conform to traditional lending criteria, which can occur if you're self-employed or a new Australian resident, or if you have black marks on your credit file. However, such loans do often incur higher interest rates and charges, as you might fall within a risk category inside a particular institution.

Don't let your credit score hold you back from your dream property. Compare home loan rates in seconds.


At Click Loans, we have options available to customers that are specifically designed to help them meet the lending criteria of major banks and lenders so that they become eligible for regular home loans. These short to medium-term solutions allow customers to consolidate their level of debt, ultimately reducing the total amount of interest payments they’re making each month.

Let me provide you with an example: I recently spoke with Sandra, a mother of 2 from Caringbah in Sydney’s Sutherland Shire. Sandra and her husband were making principal and interest payments on a home loan at 4.5% per annum. At the same time, they were also making repayments on credit cards and personal loans at significantly higher rates, between 13-22%.

The best solution for this couple was to consolidate these additional debts on top of their home loan, therefore reducing the total amount of interest payable. This provided Sandra and her husband with substantial savings and additional cash-flow, and at the same time reduced the risk that black marks would appear on their credit files from default payments.

Ever considered consolidating your credit card, car loan and home loan into one simple payment? Find a rate in seconds.

Debt consolidation can work for many people in similar situations. At Click Loans, our goal is to improve the financial position of our customers, and allow them to live within their financial means without having to rely on numerous credit accounts.

About the author: Sarah Walwyn is a Click Loans Home Loan Specialist. She previously specialised in helping customers in financial hardship. Sarah brings this experience to the Click Team and assists with non-conforming loan solutions.

Looking for more expert advice? Check out these 5 expert steps towards buying a house.

Tags: property, debt consolidation, nonconforming loan, click loans, refinance, new purchase

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Lendi is the trading name of Lendi Pty Ltd (ACN 611 161 856), a related body corporate of Auscred Services Pty Ltd (ACN 164 638 171, Australian Credit Licence 442372). We will never sell your email address to any third party or send you nasty spam, promise.
# Quoted rate applies only to PAYG loans with LVR of 80% or less with security in non-remote areas. All applications are subject to assessment and lender approval.
Lendi is a privately owned and operated Australian business. Our mission is to change the way Australians get home loans by providing a faster, smarter and more secure home loan experience designed around the customer’s convenience and needs. Although Lendi compares over 1600 products (2,500+ products including feature and pricing variations) from more than 35 lenders, we don't cover the whole market or compare all features and there may be other features or options available to you. While Lendi is 35% owned by founders and employees, we have also been supported by some great minority shareholders including Bailador, Macquarie Bank Ltd and a number of Australian sophisticated investors.
*WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rates are based on a loan amount of $150,000 over a loan term of 25 years. Fees and charges apply. All applications are subject to assessment and lender approval. Quoted rate applies only to PAYG loans with LVR of 80% or less with security in non-remote areas. All applications are subject to assessment and lender approval.
IMPORTANT INFORMATION: Loan terms of between 1 Year and 40 Years are available subject to lender and credit criteria. Maximum comparison rate will not exceed 14.99% (see comparison rate warning above). Any calculations or estimated savings do not constitute an offer of credit or a credit quote and are only an estimate of what you may be able to achieve based on the accuracy of the information provided. It doesn't take into account any product features or any applicable fees. Our lending criteria and the basis upon which we assess what you can afford may change at any time without notice. Savings shown are based on user inputted data and a loan term of 30 years. All applications for credit are subject to lender credit approval criteria.
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