Best home loans for bad credit
If you are looking for a home loan when you have a bad credit rating, you need to shop around and compare deals carefully. You may need to pay a higher rate or fees but you can find home loans for bad credit scores at InfoChoice.
If you are under mortgage stress, you might be looking to refinance under mortgage stress and perhaps consolidate some other debts into your home loan.
You may be looking for a more affordable home loan deal. Rates are low at the moment and lenders are actively competing for borrowers.
Refinancing with defaults isn’t impossible, especially if you can find a lender that will take into account life events like a job loss, injury or divorce. If you’ve always had a good credit rating otherwise, you may find lenders more willing to offer you a refinancing deal.
Can I refinance my home to pay my debts?
Yes, you can refinance your property in order to consolidate or pay off troublesome debts like personal loans or credit cards. This can be a good move because these debts will have the same interest rate as your mortgage, which will be lower than their previous rate. However, in order to do things properly, you need to split off the portion of the refinance loan dedicated to your other debts and concentrate on paying it off as soon as possible. If you don’t, these old debts will linger on for as long as the mortgage and you’ll end up paying way more in interest than you needed to.
Compare home loans from 99 Australian lenders at InfoChoice.
Best home loans for bad credit
The best home loan for you may not be right for someone else. This is particularly true if you are refinancing under mortgage stress or looking for a home loan for bad credit. Here are some leading deals from lenders specialising in loans for bad credit at InfoChoice.
The Pepper Easy (Bad Credit History) home loan is available for people looking for alternative income verification methods. This loan is also available for people with previous defaults. The current variable interest rate is 4.26% pa (comparison rate 4.63% pa) for owner occupiers paying principal and interest.
The Pepper Advantage (Bad Credit History) is for people with defaults, discharged bankrupts and mortgage arrears. The Pepper Advantage (Bad Credit History) home loan has a current variable rate of 5.51 per cent pa (comparison rate 5.88 per cent pa) for owner occupiers paying principal and interest.
Go direct to Pepper Home Loans interest rates and fees information at InfoChoice.
The Liberty Financial Sharp Home Loan for LVRs over 75% and under 80% (Owner Occupier) has a current variable rate of 3.84 per cent per annum (comparison rate 3.91 per cent pa).
This is a Low-Doc home loan and people with bad credit scores, defaults & mortgage arrears are considered.
For loan to valuation ratios of 65% or less, Liberty Financial Sharp offers a rate of 3.24 per cent pa (comparison rate 3.31 per cent pa).
Go directly to Liberty home loan interest rate and fees information at InfoChoice.
La Trobe Financial’s Lite Doc, Self Employed Home Loan might suit you if you are not employed with a regular steady income each and every fortnight. This loan has a current variable rate for owner occupiers of 4.49 per cent per annum with a comparison rate of 4.76 per cent per annum.
Go direct to La Trobe Financial home loan interest rate and fees information at InfoChoice.
Morgan Brooks caters for individuals, companies, trusts, the employed or self-employed. Morgan Stanley says “we strive to find the right solution for your individual circumstance including those that may not meet the criteria of mainstream lenders.”
Morgan Brooks is currently offering a special variable home loan rate for owner occupiers of 2.99 per cent pa (comparison rate 3.03 per cent pa).
GO directly to Morgan Brooks home loan rates and fees information at InfoChoice.
Compare these loans with home loans from 99 lenders at InfoChoice.
Home Loans: The comparison rates are based on a loan amount of $150,000 and a term of 25 years.
WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products.
The products compared in this article are chosen from a range of offers available to us and are not representative of all the products available in the market and influenced by a range of factors including interest rates, product costs and commercial and sponsorship arrangements
InfoChoice compares financial products from 145 banks, credit unions and other financial institutions in Australia. InfoChoice does not compare every product in the market. Some institutions may have a commercial partnership with InfoChoice. Rates are provided by partners and taken from financial institutions websites. We believe all information to be accurate on the date published. InfoChoice strives to update and keep information as accurate as possible.
The information contained on this web site is general in nature and does not take into account your personal situation. Do not interpret the listing order as an endorsement or recommendation from us. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. If you or someone you know is in financial stress, contact the National Debt Helpline on 1800 007 007.
Updated: March 2020