Bad Credit Home Loans

Frequently Asked Questions

• How do I apply?

  You can apply with Rapid Finance online or over the phone. Our process is easy and can take just a few minutes to complete. To get started, all we need are personal details and the details of your desired home loan.

  If you have any questions about Rapid Finance, you can contact our team on 1300 467 274. Alternately, you can complete a Free Finance Assessment using the contact form on this page.

• What is the Rapid Finance process?

  As home loan experts, our team has access to a range of finance options to suit almost any situation. This includes customers with a poor credit history – which could include anything from an unpaid utility bill to a previous bankruptcy.

  Once you apply, a dedicated member of our team will be in contact with you. They’ll then assess your situation, evaluate your options and find a home loan suitable for your situation. They can even assist in correcting mistakes on your credit history for free.

• How do I know if I have bad credit?

  A bad credit history can be due to a range of reasons. It could have been a simple missed payment, or a financial mistake made years ago. In some cases, a failed business venture or ex-partner can leave you with a bad credit history. Whatever the reason, a bad credit history can make getting finance hard. But it's not impossible.

  In most cases, you'll know if you have a bad credit history. But if you’re unsure about your credit history, you can contact an Australian credit reporting agency to get a copy of your report. Or call the Rapid Finance team to discuss your finance options.

• What are the interest rates on bad credit home loans?

  There is no uniform interest rate for home loans. Every situation can be different. Generally speaking, however, the better your credit history and financial situation, the easier it is to get approval and at a low rate.

  Since every situation is different, tools like comparison websites may not be as helpful as they first seem. The interest rates listed on these sites are often irrelevant to those with a bad credit history. In contrast, a Rapid Finance specialist will assess your interest rate possibilities based on financial facts.

• Can I get a home loan with a new job?

  Yes, it’s possible to get a home loan with a new employer. In many cases, full-time employees can apply for a home loan straight away. On the other hand, casual or part-time employees may need to wait for any probationary period to end.

  Of course, every situation is different. You may have a long history in your industry or have evidence of employment stability. The change in employment may have even improved your income – a significant step towards getting a home loan. Contact Rapid Finance to speak to an expert about your particular situation.

• Can I get a home loan as an ex-bankrupt?

  Yes, you can get a home loan if you have been previously bankrupt or had a Part IX debt agreement. These are major defaults that are listed on your credit history for at least five to seven years. But depending on your new circumstances, some lenders may be willing to offer you a home loan.

  Building a case for finance is the first step to getting a home loan in these situations. A Rapid Finance specialist can work with you to identify your financial strengths, such as your job history, residential history or income.

• Can first home buyers get a bad credit home loan?

  Yes. First home buyers can get a home loan – even if they have a bad credit history. With the right savings strategy in place and a budget that is affordable and achievable, the dream of owning a home could be within your reach.

  As a first home buyer, you may even be eligible for a First Home Owners Grant, or FHOG. These grants will vary from state to state, so be sure to check your state’s revenue office for more information.

• Can I get a home loan on Centrelink benefits?

  Yes, it’s possible to get a home loan while receiving Centrelink payments. Home loan approval comes down to your income and ability to repay. Some ongoing and regular Centrelink benefits, such as the age pension, the DSP or Vet Affair’s Pension, can be considered part of your total income.

  So if you receive a Centrelink benefit in addition to another source of income, you may be closer to a home loan than you think. It's important to speak to a home loan expert in these cases to make sure that you're looking for finance in the right places.

• What is loan-to-value?

  A loan-to-value ratio, or LVR, is the value of the loan divided by the total value of the property. It is used to show how much of a home has been purchased using finance and how much will be using savings or other resources.

  For example, let's say that the price of your new home is $450,000 and the amount of the home loan is $380,000. The LVR, in this case, is 0.84 – meaning that 84% of the home has been purchased using finance. The remaining 16% was funded using a deposit.

• What’s the difference between a fixed and variable rate?

  A 'fixed rate' is a rate of interest that remains the same over a period of time. A 'variable rate' of interest is one that adjusts over the loan period. The choice of interest rates may come down to your personal preference.

  A variable rate could take advantage of lower future interest rates. On the other hand, there is also a risk that interest rates may increase. While a fixed rate of interest is more stable and predictable, there may be additional fees to consider.
  
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