Bad Credit – Can I get a Mortgage?
Today, around one in four Australians will have their mortgage application rejected by traditional lenders, including the main banks, building societies and credit unions.
This rejection rate has been fairly consistent over the years, reflecting the rigid lending requirements of most mainstream lenders.
One major risk factor that many mainstream lenders take into consideration when assessing a mortgage application has been the credit rating or credit history of the loan applicant.
Often, when a mainstream lender or bank conducts a credit check on a mortgage applicant(s), if any adverse findings are identified, then the application is often declined without further reference to any other mitigating factors.
These factors can include:
- The amount of proposed borrowings relative to the value of the security offered
- The reasons presented for all defaults, writs or arrears, both past and present
- The capacity of the borrower to service (pay for) the mortgage loan
- The degree and extent of credit default
Aside from borrowers who purposely default on their loans, (of which there are relatively few instances) most mortgage applicants can provide rational reasons for past credit defaults, which, more often than not, are caused by ‘one off’ events such as:
- Temporary unemployment
- Temporary illness
- Business failure
- Marital breakdown
- Financial over commitment
In recent times, a number of ‘Non Bank’ lenders have developed mortgage products that take into consideration these ‘one off’ events and allow potential borrowers the scope to secure mortgage finance.
Assent Mortgage Finance is a specialist mortgage finance intermediary that can assist borrowers who have a ‘checkered’ credit history, in an effort to obtain mortgage finance on competitive terms and conditions.
For many Australians, who have a poor credit history, there is often a belief that there are no viable mortgage alternatives available to them. This couldn’t be further from the truth.
For those who want to know more about getting a mortgage with a history of bad credit, we have provided valuable information for clients with some level of poor credit history but who also require mortgage finance to purchase a property or to refinance their existing mortgage.
Getting it right the first time will always position your ‘Bad Credit’ mortgage application in the best light and with the greatest opportunity to get the right outcome.
Call Assent Mortgage Finance now on 1300 72 86 96 for professional assistance