Bad Credit Home Loans

Turn your credit around with a home loan that fits

Struggling with bad credit?

 

Is bad credit making it hard for you to get a home loan? Has your bank declined your mortgage application? At Max Mortgages, we believe that every Kiwi deserves to live their best financial life, and we’re here to exhaust every possible avenue to help you get there. Learn about bad credit home loans and how we can help you secure one for your home.

Can I get a home loan with bad credit?

 

In today’s market, getting a mortgage can be challenging if you don’t have a solid credit history. Generally, lenders use your credit score to help evaluate your creditworthiness. If you have a few black marks on your credit report, they might think you’re not such a good bet and, therefore, are less inclined to approve your home loan application.

 

However, having an impaired credit history doesn’t necessarily mean the end of the road when borrowing money for a home. At Max Mortgages, we understand that life has ups and downs, which can affect your credit history. Having bad credit doesn’t mean you are a bad or untrustworthy person. Many Kiwis fall into bad credit simply because they have gone through an unfortunate life event like a bad spell in a relationship, unexpected unemployment, a business failure, or a critical illness in the family.

 

If you have a below-average credit score, you might still be able to obtain a home loan with our help. As experienced and licensed Mortgage Advisers, we specialise in advising on Bad Credit Home Loans. We’ve helped many customers secure mortgages with several blemishes on their credit history, such as poor repayment history, serious credit infringements, and court judgements.

What is a Bad Credit Home Loan? 

 

In NZ, Bad Credit Home Loans are a mortgage product tailored to borrowers with credit issues who want to purchase a house or keep their existing property. This type of home loan provides funds to people who may otherwise not qualify for a mortgage.

 

 

WHAT ARE THE INTEREST RATES FOR BAD CREDIT HOME LOANS? 

 

Borrowers with an adverse credit history might have to accept slightly higher (yet still competitive) interest rates due to the increased risk that lenders take on. However, many Kiwis find that the benefits of getting a mortgage sooner outweigh the additional costs. After all, paying down a mortgage is a great form of saving, as you are building your home equity to increase your wealth instead of throwing money away on rent. In addition, a Bad Credit Home Loan could be a lifesaver if you are falling behind on your mortgage payments. If you feel that the only way out is to sell your house, talk to us as soon as you realise you can’t pay, and we will work the hardest to help refinance your mortgage to better fit your needs. You might also be able to improve your credit profile to build a strong financial position while paying for a Bad Credit Home Loan.

 

 

WHAT ARE THE LONG-TERM COSTS AND BENEFITS?

 

Helping Kiwis secure mortgages is not all we do – we also help our customers make sure their home loans are always competitive. Even if you have to pay slightly higher interest rates today for a Bad Credit Home Loan, you probably won’t be on those same rates forever. At Max Mortgages, we aim to build a lifelong relationship with our customers, which means working with you to help rebuild your credit rating. We aim to ensure that as you rebuild your credit rating, you are continually on the best mortgage option. We do this by staying with you during your mortgage journey and negotiating and refinancing your mortgage into a better deal with lower rates and more favourable terms whenever possible.  Because we are accredited with an extensive number of mortgage lenders, including all the main banks, it provides us with many options to ensure our customers are always on the most competitive mortgage deal.

How do I get a Bad Credit Home Loan?

 

If you are struggling to get a mortgage because of your credit history, don’t give up! There are still several options available to you.

 

 

CONSIDER BOTH BANKS AND NON-BANK LENDERS

 

When it comes to getting a mortgage, you can choose to apply with either a bank or a non-bank lender. If you don’t meet main banks’ lending standards, a non-bank solution may be the answer you’re looking for. In contrast, non-bank lenders are regulated by fewer government bodies, which gives them more flexibility regarding lending criteria and home loan products. Instead of rejecting your application as soon as they see your credit history, they’ll take the time to understand what happened and consider each application on its merits when assessing your situation.

 

Each lender has its own rules and eligibility criteria. The key is knowing which lenders will give you a second chance. At Max Mortgages, we work closely with all main banks and a broad selection of non-bank lenders specialising in lending to borrowers with credit issues. Our in-depth understanding of lenders’ criteria makes it easy to match you up with the most suitable lender that will potentially consider you for approval, lowering your risk of being declined and adversely affecting your credit report.

 

 

WORK WITH A MORTGAGE ADVISER LIKE MAX MORTGAGES

 

At Max Mortgages, we not only align you with the right lender but also ensure the best possible presentation of the deal. With years of experience, we know exactly how to emphasise the positive aspects of your application and demonstrate to lenders that you deserve a second chance!

 

What’s more, we can also provide expert advice on how to become a good financial citizen in the eyes of lenders. If you are overloaded with debts and can’t get a mortgage anywhere, our Personal Lending Team at Max Loans might be able to help. We can assist with a debt consolidation loan to pay off your high-interest debts so you can put the money you were using on repayments into savings and start afresh. After you’ve demonstrated good financial behaviour for a certain period, lenders may re-consider your position.

Contact a Mortgage Adviser today

 

If you’re looking for advice on mortgage refinancing, bad credit home loans, or just need general advice about home loans in NZ, please get in touch. Call us on 0800 ASK MAX (0800 275 629) or email us to arrange a free, no-obligation chat.

Bad Credit Home Loan FAQs

Bad credit typically refers to a low credit score due to previous financial difficulties, such as late payments, defaults, or bankruptcy. In New Zealand, there isn’t a set number that defines "bad" credit, as each of the three main credit bureaus - Illion, Equifax, and Centrix - uses its own scoring system. Additionally, the definition of a "bad" credit score can also vary depending on the lender evaluating your home loan application. However, as a general guideline, if your score falls below 300, you likely have some negative data on your credit file, such as defaults, judgements, late payments or a large number of credit enquiries.

You can improve your chances with several strategies, such as saving a larger deposit, clearing outstanding debts, and demonstrating a steady income. You might also want to work with one of our Mortgage Advisers who understands bad credit lending options.

A Bad Credit Home Loan provides an opportunity to buy a home or keep an existing property despite financial challenges. These loans often come with more flexible terms and may help you rebuild your credit rating through regular, timely repayments.

Yes, due to the higher risk involved, lenders typically charge slightly higher (though still competitive) interest rates and may impose additional fees for Bad Credit Home Loans. While Bad Credit Home Loans may come with slightly higher interest rates or fees, they also offer an opportunity for borrowers to secure financing and improve credit over time.

Yes, once your credit score improves, you can explore refinancing your home loan to secure better interest rates and more favourable terms. A good Mortgage Adviser will work proactively with you to help improve your credit and potentially refinance you back to a main bank where there are often better interest rates.

Finance for Kiwis from people who care

Read how we’ve helped other Kiwis with their mortgages and home loans.

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