Possible Home Loan Lenders - I Had a Few Defaults

Lbulkie on 27/01/2015 - 13:26

Hi all,

After hearing horror stories about how impossible it is getting a home loan with major banks if I've had a few defaults, just needed some advise on how to move on.

Defaults came from credit cards that were unpaid due to losing employment in 2012. They've amounted to approximately 20k. I've paid them all up in full in the early part of 2014.

I have about 60k saved up now and really keen to buy my first home. Spoke to a Mortgage Broker last week and she said I can possibly get a "Bad Credit Home Loan" which has interest rates of about 9%. I'm finding that really hard to believe.

If anyone can make any recommendations moving forward, it'd be very much appreciated.

Financial

Comments

  • Settero on 27/01/2015 - 13:41
    +6

    save for a few more years , if you have saved 80k in 2 years… you can get a pretty good deposit for when you are no longer considered a liability..

  • jwing0001 on 27/01/2015 - 14:11

    I am working in the mortgage industry as well, so I can confirm that pretty much your broker is telling you the sad truth…A single default is enough for you to wait for 2 years for the major lender. Or else the only thing you can get are those bad rate home loan.

    • bulkie on 27/01/2015 - 14:26

      Ye I can totally understand but 9% rates?

      • jwing0001 on 27/01/2015 - 14:32

        Normally it will be 2 X normal standard variable rate for the default rate, so it sounds fair. The NON-DISCOUNTED Standard Variable Rate now is like 5.XX% so 9% sounds fair to me.

      • Baghern on 27/01/2015 - 14:43
        +1

        Bulkie would you lend to a defaulter?

        You'd need to take in extra for the potential risk that they'd do it again.

  • tomleonhart on 27/01/2015 - 15:32

    Have you tried any of the non conforming lenders ?

    • bulkie on 27/01/2015 - 15:37

      Yup looking at some of those now. Any decent ones around who wouldn't cost me an arm and leg?

      • tomleonhart on 27/01/2015 - 15:42

        There are not that many around. Worth a google search.

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