Can you get a home loan with bad credit in Australia?

Have you found the perfect home, but aren’t sure if your credit score will hold up? Wondering if this is where your dream ends? 

Thankfully, it is possible to get a home loan with bad credit in Australia, but it takes work and can be a little tricky. Here at Fix My Credit, we help people understand their credit, fix problems, and explore ways to get approved for a home loan, even with bad credit. 

Let’s talk about bad credit

When it comes to borrowing money, lenders don’t just look at your income, they want to know how good you are to paying it back. That’s where your credit report matters. In Australia, “bad credit” usually means things like missed payments, defaults, bankruptcy, court judgments, or that you’ve submitted too many credit applications in a short amount of time. Lenders can check your credit report through agencies like Experian, Equifax, and Illion.

What about credit scores? 

Credit scores range from 0 to 1200 (depending on the provider), and lower scores generally signify a higher risk. But remember: bad credit doesn’t mean you’ll never get a loan, it just makes lenders a little more wary to lend you money.

Can you get a home loan with bad credit? 

The simple answer is yes, however, you might find yourself more limited in options. The big banks have plenty of rules, often stricter, and may turn you down. Specialist lenders can be more flexible and more willing to work with individuals with poor credit. 

It’s important to remember that these lenders can come with some conditions, stricter rules, higher interest rates and larger deposits. When you show financial stability, like a regular income, savings and the ability to pay off debts, it can have a huge impact. 

Lenders that consider your overall financial situation are going to be more flexible, offering alternative paths to get approved when you have bad credit

What factors do lenders consider when approving home loans? 

There are a few things that lenders consider important when looking at your financial stability, including: 

• Employment history and income stability.
• The size of your deposit.
• The type of bad credit you have on your credit report. 
• The time since the negative event.
• Whether the issues have been resolved (paid). 

How to improve your chances before applying

To give yourself a better chance at getting a home loan approved, the team at Fix My Credit recommends: 

• Pay off any outstanding debt. 
• Avoid making any more credit applications. 
• Check your credit report for mistakes (Fix My Credit can help with this).
• Save the maximum amount you can for a deposit. 
• Get professional help! 

How can Fix My Credit help your chances of getting approved for a home loan? 

Our credit repair services help individuals remove defaults, negotiate with creditors and correct mistakes on their credit reports. Fix My Credit’s expertise has helped many Australians get loan-ready. We’re here to see what we can do to get your finances back on track and improve your chances of getting approved for the home loan you want. We’ll help you take the stress out of dealing with creditors so you can focus on the end goal, buying your new home. 

Credit repair Australia-Wide

Having bad credit isn’t the end of the road when you’re trying to secure a home loan. With the right approach and the right preparation, Fix My Credit can help. If you’re ready to take the next step and turn things around, contact us today!