Managing our own finances can be one of the most stressful jobs we have to do. Often times, we require the help of lenders to ensure we can meet all of our important and personal financial life goals. This of course means, taking out a loan, or two, or three . . .
One of the most common loans that are applied for across the globe, are personal home loans – otherwise know as mortgages. If you are like me, perhaps you worry that this is a huge financial commitment that will be an extremely difficult process and one that you may not even be eligible for. That being said, there are so many people in this same situation, and many of them will at one time or another experience poor credit.
This right here, is often a leading reason why many individuals fear the loan process – and worry they will never be able to become home owners. Times, however – they are a-changing and many lenders – yes even some banks – are opening their doors for people with all ranges of credit levels. Particularly, there are many lenders who work primarily with individuals struggling with credit issues – and make it their goal to help this broadening group of borrowers find the loans they require.
If you are looking for bad credit mortgage loan options in Australia, here are some helpful tips that will enable you to know where to look and also what to expect from this process.
First off, you will want to search for companies who list themselves as bad credit loans – or bad credit mortgages in your area. These specialized lenders, as opposed to mainstream loan providers can offer you the financing you need to purchase your home. Often times, these groups are able to price their products based more accurately on the element of risk involved.
These loans may also be referred to as non-conforming loans and are designed based on certain criteria that paints a more realistic picture of what many borrowers with bad credit are dealing with. Non-conforming mortgages take into account the fact that borrowers may have developed a poor credit rating due to missed payments, lack of job security, having tax debt, having no credit rating due to their new resident status, as well as being close to the retirement age, and so on.
In this scenario, your ability to repay your loan will also be determined, as with all loans – however this does not mean you will be denied. What it may mean is that the loan size will be calculated based on how capable you are of paying back the loan, as well as having to take on a higher interest rate.
One tool, I found very helpful is the online mortgage calculators. Many of the sites that offer these types of loans, provides tools so that potential borrowers can compare loan features as well as repayment schedules to see which loan is a better fit for their current financial position.
On the whole, it can be a good idea to apply for a variety of loans and compare the mortgages that different lenders are proposing. Some lenders will offer online applications that use computer programs that collect your information and make a decision about whether you are eligible – or how much of a loan size you will receive, etc. In this case, I have learned that it may actually be better to discuss your application in person – or over the phone to a human provider that is more capable of understanding your personal situation, including your past and current financial realities.
Fox Symes Home Loans is one of the leading company that has been offering mortgages and refinancing options to Australians for many years. This group provides a free assessment of your finances and in minutes can inform you of just how much you can save by refinancing your home loan. One of the key areas that they focus on is the fact that you can save thousands of dollars in interest and monthly payments by switching to a new loan. Through online tools and resources as well as a brief online pre-approval process, individuals with bad credit can being the road to credit recovery.
An overview of their loan features include:
• Borrow up to $2 Million
• No Ongoing fees
• No Upfront Fees
• Split Loans
• Weekly, Fortnightly, Monthly repayments
• Additional repayments
• Free Online Redraws
• Interest Only
• 100% offset account
• Free Internet & Phone Banking
Of course there is lender requirements and certain fees that are applicable -however knowing that you can find a mortgage or can refinance your mortgage, without risking rejection is a major bonus.
Through Home Loan Experts, you’ll have access to a diverse range of mortgage options as well as other types of personal loans. Bad Credit is a specialised area for them, as well as credit repair and other debt solutions. Mortgages through this company are described as those that are offered through non-conforming or specialist lenders that devise mortgages that are suited to individuals with poor credit.
The leading benefits that Home Loan Experts want to convey to its potential customers are that offer an even larger network of lenders that can find more loan options than other companies. They provide a free quotation service, they work with residents on an Australia-wide basis, and they also offer free credit reports. In addition to the bad credit loans, they also offer home loans that fall under categories such as non-resident loans, no-deposit loans, unusual employment loans – all of which may apply to individuals that possess bad credit.
Lastly, this company offers numerous methods for contacting them, including phone, online, and in person. The fast that this organization lists its head office location, speaks volumes about its reputation and dedication to serving as a top mortgage group.
The moral of the story here is: there are more options available to borrowers these days – and if becoming a home owner in Australia is your dream, regardless of having poor credit there are avenues you can pursue that can get you to where you need to go. Armed with some faith and some research – you can overcome your bad credit and secure for yourself the mortgage you need.