Bad Credit Home Loan

"In desperation I googled Freedom loans and the web page had a statement saying “If we cant help you no one can” . So with that I emailed Freedom loans and from there the help never stopped. Our loan process was quite difficult as my husband was self employed and we had investment properties with securities. What I thought was nightmare situation, the staff at Freedom Loans took control. We always knew where we were up to and what was to happen next. We were always kept in the loop. I can highly recommend Freedom Loans especially if you are in a tough financial position as we were."

Allana and Darryl Gregson

The REAL reason most banks don’t do bad credit home loans

Most banks will only give you a home loan if you’re low-risk. Better yet, there is no risk.

Why? Because that makes the paperwork easy.

The simple fact is that they rely on high-volume, straightforward work. So they cater to the easy borrower: fill out a straightforward form, tick all the same boxes as usual, rubber stamp the application, and move on to the next customer.

But bad credit home loans are different. The paperwork, accounting, and legs are tricky. They take time to set up and a lot of thought because every situation is different. It’s all too hard for most banks.

It’s not that they’re incapable of doing it. It’s that they don’t want to. It just doesn’t fit their business model. So much so that they still won’t give you a home loan even if your credit problem is trivial. You didn’t know about it, but you resolved it as soon as you learned about it. Because even then, they’d have to complete some problematic, time-consuming paperwork.

In their eyes, once the sums say you’re a risk, you’re always a risk. Unfair (and nonsensical) as it is, they generally won’t touch you again once they’ve turned you down.

But some banks WILL still lend to you.

There are a handful of reputable banks in Australia that do offer bad credit home loans. But they’re very few and far between, and, more importantly, their paperwork is anything but easy. It’s a different proposition to applying through a “Big Four” bank like CBA or Westpac. They expect you to fill in a LOT more forms, get all the facts and figures right the first time, jump through a crazy number of hoops, and do hours and hours of legwork.

And while it’s good news that you have options, the even better news is that you don’t have to do any of the work yourself.

We can do it all for you.

We know which banks to apply with, and we can make it happen

Bad credit home finance is our speciality. We’ve been doing it since 2003, and in that time, we’ve helped thousands of people into their dream homes – despite their less-than-perfect credit histories.

The secret? Well, it’s not a secret at all. All we do is take the time to learn precisely what’s causing your credit problems before we start your application. It’s different for everyone. We go through, in great detail, what’s been happening in your financial life – your assets, your liabilities, your income – then we talk about what you’re trying to do and what responses you’ve received from your previous applications. We then draw on the experience of thousands of earlier applications for clients in all sorts of situations to decide if we need to rectify the problem and, if so, how.

We will only choose the most appropriate lender from our specialist network and complete and submit your application. When we do, we go through a credit manager we know personally. We’ve been doing this for nearly 15 years, so we know who’s who, we’ve built relationships, and we can even negotiate exceptions to their standard requirements here and there.

Freedom Loan clients hardly ever decline as long as they meet the base criteria:

– Earn a household income that can support the repayments (a minimum of $100K depending on the loan size)
– Have a minimum of 10% of the purchase price in deposit (if new mortgage).

Why not do it yourself?

Naturally, you’d ask why you shouldn’t just do it all yourself. After all, who knows your financial situation better than you? However, knowing your financial situation is only part of the solution. You must also know which banks offer bad credit home loans and how those offerings differ. Because they are different…

Outside of minor differences like rates and fees, they all look very similar. But once you’ve completed the paperwork for all of them (many times!) and you’ve gotten to know the decision-makers, you learn they’re worlds apart. They may all call themselves bad credit home loan banks. Still, each one has its speciality, and – like the big banks – they steer clear of anything outside of their comfort zone simply because they’re not set up to handle it confidently, safely and, above all, efficiently enough to make a decent profit.

In other words, each bad credit home loan bank has only one way to solve a problem. One product and one stringent set of rules. And if you don’t fit neatly into their equations, they say no. Then you’re back to square one and wasted weeks, or even months, of valuable time.

On the other hand, we have multiple ways to solve a problem. We have access to all the solutions and know – without wasting your time on countless applications – which ones are most likely to bear fruit.

Plus, unlike the (usually junior) loan officer at the bank who gets paid no matter what, we don’t get paid unless you get a loan. So we’re far more motivated to see that it happens. On the other hand, the loan officer is more interested in minimising the bank’s risk. They may even look for reasons to say no.

Indeed, you can be rejected simply because you said or showed the wrong thing. (And when you have a bad credit history, there can be many wrong things to say or show. It’s a minefield!)

The deeper you dig, the more complex it gets, and the more likely you are to trip over a hidden gotcha. Usually, this results in another rejection and wasted time. But if you’re ‘lucky’ enough to be given a loan, chances are it won’t be the right one.

So, yes, if you have the time, patience, and financial proficiency to learn about all the bad credit home loan banks, their products, and their rules, then by all means, you should definitely do it yourself. Otherwise, getting help from the people who know it already makes a lot more sense.

Why not use a regular mortgage broker?

Most mortgage brokers deal only with the big banks. And most of their clients are just time-poor people who merely want someone to shop around for them and fill in the paperwork. They don’t have credit problems.

So, like the banks themselves, brokers build their businesses on quick, simple, turn-key loan applications. They’re not interested in bad credit home loans and have little to no experience dealing with them. They can’t identify the cause of your problem, and even if they could, they don’t know all the lenders who can help, much less which one to choose for your particular situation. (In fact, most brokers will present you with a list of lenders and say pick one!)

Put bluntly, if you go with a run-of-the-mill mortgage broker, you’ll probably just get turned down again or wind up with the wrong home loan.