What Is Considered Bad Credit for a Mortgage?
For Australians interested in financing the purchase of a home, credit score matters. In Australia, lenders prefer to see credit scores between 500 to 700. To qualify for a conventional mortgage, it’s best to have a credit score closer to 700 than 500. Nonetheless, bad credit doesn’t stop homebuyers from becoming homeowners. Homebuyers who have blemishes on their credit report can apply for a bad credit home loan from Mortgage House.
The Australian government continues investing resources to help renters become homeowners. Plus, the hit that the economy took in the late 2000s changed several standards for lenders. Lenders developed alternatives to conventional mortgages. Over time, more home loan products became available to homebuyers.
Mortgage House is a non-bank lender. We provide competitive home loan terms to well-qualified homebuyers. We also work with homebuyers who don’t have perfect credit scores.
Sometimes homebuyers simply need to get their foot in the door. Bad credit mortgages have higher interest rates than conventional home loans. The good news is that refinancing a home loan is available to homeowners. As homeowners improve their credit score and repay their mortgages on time, their financial position improves. Plus, the property starts accruing home equity.
Homebuyers can explore their options through Mortgage House. Our loan specialists have tools at their disposal to find competitive terms for most homebuyers.
Bad Credit and Mortgages Conclusion
Homebuyers who have bad credit face some challenges when trying to finance a home purchase. However, Mortgage House does offer a bad credit home loan. Contact our loan specialists to start the application process.