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Bad Credit

There are many different reasons as to why you may have ‘bad credit’ (see below for some examples) and this doesn’t mean you do not qualify for a home loan to purchase a property.
It is a lot easier than you think!
Here’s some information to help you work out how you can get a home loan with bad credit. Please know are Mortgage Brokers are here to assist you any time. Call us on 1300 559 949 or email


Unfortunately defaults are one of the most common ‘bad credit’ scenarios we see and can sometimes restrict your home loan options this is why it’s best to speak to a Mortgage Broker to find the best solution for you while the default is current.

• What is a default? – A consumer payment default is debt of $150 or more that is 60 days or more overdue. For example, if you have a telephone bill of over $150, and it was due more than 60 days ago, it could be listed on your credit file as a payment default.

Before listing a consumer default, the credit provider must take a number of steps including sending a notice to your last known address requesting.

For more information refer to

• How long does a default stay on my credit file? – A default generally stays on your credit file for 5 years so this can affect your capacity to borrow money for this period.

• Can I get a default removed? – There are many companies around that can certainly attempt to remove the default from your credit file but more often than not this process is timely and costly so if you are looking at purchasing property or refinancing it is best you appoint one of these companies well and truly beforehand. Contact us for more information on who to speak to.

• How much can I borrow? – You are still eligible for a home loan although you’ve got a default/or defaults, however this can sometimes affect what deposit you need.
– Equal to or less than $500 paid defaults: you can borrow up to 95% of the property value;
– Equal to or less than $1,000 paid defaults: generally reduced to 90% of the property value;
– Unpaid or larger defaults: are looked at by a non-confirming/specialist lender and you can generally lend up to 90% of the property value.
Our Mortgage brokers are here to assist you with any questions on the above.
Please call us on 1300 559 949 or email