If you’ve been told “no” by your bank because of bad credit, you’re not alone. Many Australians believe a poor credit history means they can’t buy a home, but that isn’t always the case.
At Adelaide Home Loans, we work with a range of lenders that assess each application individually. Depending on your circumstances, there may still be home loan options available.
What Is Considered Bad Credit?
Bad credit can include:
- Missed loan repayments
- Credit card defaults
- Utility or phone bill defaults
- Debt collection listings
- Previous bankruptcy
- Part IX debt agreements
- Court judgments
- Multiple credit enquiries
- Mortgage arrears
Not every lender views these situations the same way. Some lenders have policies designed for borrowers with more complex financial histories.
Can I Still Get a Home Loan?
Possibly. Approval depends on factors such as:
- Your current income
- Employment stability
- Savings or available deposit
- Existing debts
- The reason your credit was affected
- How long ago the credit issue occurred
Many lenders place more emphasis on your current financial position than on older credit issues.
Common Reasons People Have Bad Credit
Life events can affect anyone. Common examples include:
- Illness
- Divorce or separation
- Loss of employment
- Business cash flow problems
- Cost of living pressures
- Unexpected expenses
A past financial setback doesn’t automatically prevent future home ownership.
How Much Deposit Do I Need?
The required deposit varies between lenders and depends on your overall circumstances. We have access to lenders that can lend 95%
Some borrowers may qualify with a smaller deposit, while others may need a larger contribution or additional security.
Can self-employed borrowers qualify?
Yes. Some lenders offer options for self-employed applicants, although documentation requirements vary.
Will checking my credit score affect my application?
Viewing your own credit report generally does not lower your score. However, multiple formal credit applications in a short period can be viewed differently by lenders.
Is refinancing possible with bad credit?
Some borrowers may be able to refinance, particularly if they have built equity in their property and can demonstrate an ability to meet repayments.
Speak With Adelaide Home Loans
If you’re unsure whether you qualify, obtaining advice before submitting multiple applications can help you understand your options.
Whether you’re buying your first home, refinancing, or exploring specialist lending, Adelaide Home Loans can discuss the lenders and loan products that may be suitable for your circumstances.
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