We just wanted to send you a quick note to let you know the house settled at 3pm yesterday .We also want to thank you for all you have done for us. We have been trying to get this loan for almost 3 years. You have helped us get on our feet and finally allowed us to own our first home. You really don’t know what this means to us. It has been a long road, but you have made it worth the wait Thank You!!!!Katie & Ken MacKenzie
Why won’t the banks let you refinance?
Banks like things to be easy. In fact, they need things to be easy. Their whole business is built on efficiency and repeatability. To ensure a consistent return for their shareholders, they need to minimise risk and get every employee to do the same thing, and follow the same rules. In other words, they have to adopt a cookie-cutter approach.
And when you have a bad credit history – even if you’ve already resolved the problem – you just don’t fit that approach. Your situation requires more thought, different paperwork and much more of it, and a significantly better understanding of personal finance than their – usually fairly junior – loan officers possess. It may even require an entirely different legal and underwriting structure.
But some banks WILL still let you refinance
The big banks are pretty much out of the question. Going to them for bad credit refinancing is like going to McDonald’s and asking them to make a pizza. They’ll look at your like you have horns.
But there are a few reputable banks in Australia that do offer bad credit refinance. Not many, of course, and when you apply with one, they really make you work for it. Their application process makes the typical big bank refinance application look like a fun survey. They’re long, incredibly detailed, and full of questions that can can mean an instant rejection if answered incorrectly.
Fortunately for you, we’ve filled them out hundreds – if not thousands – of times already. So we can do it all for you.
We know the banks that can help and how to get them to say “yes”
Bad credit home finance is our specialty. We’ve been doing it since 2003, and we know all the banks that offer it, which of them can be trusted implicitly, what sort of information they require and what sort of answers you should avoid. We’ve even figured out who the best loan officers are (who says “yes” most often), and we’ve developed great relationships with them. And, of course, we’ve jumped through all the hoops of the various application processes more times than we could count.
So to us, the part that would be hardest for you – choosing the right bank and applying – is the easiest for us. In reality, our real challenge can be getting all the necessary information out of you! And that’s very important.
Which is why we take all the time we need to learn exactly what’s causing your credit problems before we start your application. It’s different for everyone, so we start with the basics – your assets, your liabilities, your income – then move on to your objective and the details of your previous applications and the banks’ responses.
This allows us to help you resolve the problem that’s causing your bad credit, choose the most appropriate lender and loan officer for your unique situation, and paint a clear (and pretty) picture of your financial standing in your refinance application.
And as a result of this process, our clients hardly ever get declined.
Can’t you just do it yourself?
Sure. If you feel you have the time, understanding and confidence, you can definitely give it a shot. But there’d still be one missing ingredient. And it’s a very important one…
The banks may all look very similar on the surface, but once you’ve completed the paperwork for all of them as many time as we have, and you’ve developed relationships with the decision-makers at all of them, you learn they’re really worlds apart. They all have a niche specialty. They have one product, one very strict set of rules, one way to solve a problem. And they steer clear of anything outside of their comfort zone. Like all businesses, they try to stick to the work they can handle confidently, safely and efficiently enough to make a decent profit.
Without experience it’s very easy to choose the wrong bank. Which means your application won’t match their solution perfectly, and they’ll just say no. Then you’re back to square one, and you’ve wasted weeks of valuable time.
And to make matters worse, the loan officer at the bank you apply with gets paid no matter what. It’s their job to minimise the bank’s risk, so they proactively look for reasons to say “no”. It could even be something as simple as saying the wrong thing in a casual conversation. (And when you have a bad credit history, there can be many wrong things to say. It’s a minefield!)
Can you use a normal mortgage broker?
Most mortgage brokers deal only with the big banks, and they don’t cater to people like you with credit problems. They cater to people who could refinance with any bank, and who just want someone to shop around for them and fill in their paperwork.
Like the banks themselves, brokers stick to their comfort zone: quick, simple, turn-key loan applications. They’re not interested in bad credit home loans, because they have as little experience applying for them as you do. Most wouldn’t be able to identify the cause of your problem, and even if they could, they wouldn’t know the lenders who could help or which one to choose for your particular situation. (In fact, most brokers will just present you with a list of lenders and say pick one!)
In other words, if you use a normal mortgage broker, there’s a pretty good chance you’ll get turned down again.