What is a Bad Credit Home Loan? 

A bad credit home loan is also known as a non conforming home loan, whereby the borrower has some form of credit issue or limited financials which may stop them from seeking a home loan using the more traditional banks.

A home loan for someone with bad credit is available in the home loan market.




It does not make you a bad person, or different to any other borrower, it is just that the non conforming lender is taking what may seem to be a higher risk than if they were to lend to a normal family with mum and dad, two kids, with a steady job, clean credit and stable income.

The bad credit home loan market is increasing, as more and more individuals start a home based business (self employed), higher number of credit defaults, higher number of bankruptcies, higher number of court judgments, higher number of company and business liquidations, the evidence goes on.

Once you have been hit with a credit default or the like, you will need to look outside the traditional banks in most cases, and seek a non conforming type home loan, whereby the lenders in this space specialise in bad credit, low document, self employed, outside the square home loans.


Some lenders prefer self employed applicants with defaults, others are happy to finance PAYG income earners with credit defaults, others have the ability to help you even when your current lender is about to take possession of your property, they each have their niche and ability to help you.