Getting a Home Loan When You Have Bad Credit

Applying for a home loan can be daunting if you know that you have a bad credit history, for whatever reason. Not only is it more difficult and often more expensive to take out a home loan when you have bad credit, but it can also be a risky decision unless you’re confident that you’ll be able to make the repayments.

However, under the right circumstances, a bad credit home loan can be the ideal solution to securing your dream home.

What is a bad credit home loan?

A bad credit home loan is a mortgage specifically designed for people with a bad credit history. There are a number of reasons why you might have bad credit, but the most common are defaults and bankruptcies.

It’s a legal requirement in Australia that lenders only loan money responsibly, meaning they need full confidence that the applicant will be able to make the repayments. For this reason, things like income, expenses, employment, deposit amount, and the amount you’d like to borrow will all be taken into consideration during the application process.

How does a bad credit home loan work?

A bad credit home loan works in much the same way as a standard home loan, except that the interest rates are usually higher and the loan amount smaller. The reason for this is that bad credit home loans are considered to be a higher risk by lenders, so they charge a higher rate of interest to offset this risk.

Given that interest rates are higher, the idea is to treat bad credit home loans as a temporary short-term solution, before refinancing to a more optimal outcome with lower interest when your credit report improves or when negative historical data (like overdue payments and court judgments, for example) is removed from your file.

The good news is that bad credit home loans are available from a number of specialist lenders, and at BFG Loans, we can help you research these lenders to find the ideal bad credit home loan for your specific needs and unique circumstances.

We can help you get a suitable home loan, regardless of whether your credit is good or bad

Our friendly brokers are highly experienced in navigating all the various home loan options available to you, so that we can help you secure the best mortgage
Our panel consists of more than 35 reputable banks and lenders
When you trust us with your search for the right lender, you’re also providing a home for a family in need – 50% of our profits go towards building affordable housing for families that need it most
At BFG Loans, we specialise in bad credit home loans, low deposit home loans, no LMI home loans, guarantor home loans and other first homebuyer loans

Get in touch

To speak with a knowledgeable BFG Loans mortgage broker today, don’t hesitate to book a consultation.

Hear from others how BFG is making a difference

We are so happy to have been able to work with Sam at Benevolence Financial Group on bringing our home ownership dreams to life. As first home buyers we had no idea what we were doing and whether we were even in any kind of position to purchase. Sam explained everything and patiently answered our many questions, talking us through every step of the process.

Jen

Highly recommended. Sam and his team are a highly professional group who helped us with a refinance. They were attentive, proactive, and knowledgeable in their service as they guided us through the transition.

Oliver

Sam from the BFG looked after myself and my Fiance when we got our first home purchase. Sam was very down to earth, professional and really went above and beyond to help us every step of the way. He helped us, offered us support and made sure we get through things very smoothly. he answered all our questions and was always available to chat, was very proactive and always had the answers.

Reta

I can’t recommend enough Sam, he’s caring, savy, organise, responsive and very knowledgeable, Sam really care about you and he will always procure to get the best outcome for you. Thanks so much for your help Sam, I can’t thank you enough.

Patrick

We met with Samuel and right from the start he listened to our goals and got us meeting with the relevant people. He was extremely proactive and found lenders to say yes when our current said no. Have used him many times and would recommend him to any small business owner who is trying to get ahead and set up an income for their future and future family. Look forward to continue to working with him and his team

Andrea

Samuel has been incredibly helpful guiding us through our first home purchase. He’s been incredibly patient, very responsive, and got us a great deal on our mortgage. On top of all that, his business model is geared toward socially responsible and ethically minded businesses/banks – something we really valued. It’s great to know our investment is doing something great for us, but also for others and the world. We would highly recommend this business and specifically Samuel, he’s just an absolute legend!