Do you have, or have you had Credit problems?

Had credit problems in the past? Don’t fit lenders’ traditional criteria? Don’t despair. With today’s wide range of home loans and lenders, even people considered ‘credit impaired’ can now apply for a home loan.

These loans, known as non-conforming home loans, are specifically designed to suit people who are:

• self employed
• no longer working full-time and/or retirees
• credit-impaired
• contractors
• seasonal or casual workers

How they work

Non-conforming home loans work like most other loans. Borrowers can choose from a range of loan types including variable, fixed and split rate loans and popular features such as line of credit, redraw and offset.

Because credit impaired and non-conforming borrowers are regarded as higher risk, most lenders charge a slightly higher interest rate and/or a higher fee structure than for traditional loans. Non-conforming loans can also be less flexible (particularly when it comes to refinancing).

There are two types of credit impaired borrowers. Those with past credit problems that have now been fixed, and those with current credit problems.

If you've had problems in the past and fixed them ...

Past credit issues may complicate your loan application. They are detailed in a "credit file" which any potential lender may ask to see. You may be considered credit impaired if you have:

• regularly paid large bills (>$100) more than 90 days past the due date
• been declined a loan in the past
• been declared bankrupt.

Credit applications, enquiries and overdue accounts remain on your credit file for five years, while bankruptcy information is retained for seven years.

If you still have credit problems ...

If you still have credit problems – even if your problems weren't your fault - the right loan can help get your problems under control. By restructuring your existing loans and bringing them into your home loan, you can pay off your loan faster, or lower the burden of repayments.

How Top Choice Home Loans can help

At Top Choice Home Loans, we have access to a number of specialist lenders who know how to deal with issues like yours. We may be able to assist you with a loan now or give you helpful advice so you will qualify for a loan in the future.