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Bad Credit Home Loans and Bad Credit Mortgages

The great Australian dream is to own one’s own home. In order to do so, you must not only save enough funds to cover a deposit; you must also be approved for a home loan and mortgage. This becomes even trickier if you have a bad credit history – and this is where providers like Universal Finance can come to the rescue with bad credit home loans and bad credit mortgages.

A bad credit history can happen to anyone. It can occur as a result of job loss, divorce, injury or illness, or business failure, or even forgetfulness. Some factors which result in a bad credit history include late payments, unpaid bills, unpaid tax liability, bankruptcy, multiple credit applications or debts, overdue accounts, as well as serious credit infringements and even financial problems within a company you operate. A bad credit rating can affect you for up to seven years. Up to 20% of Australians have a bad credit history, and this can be an impediment to qualifying for a loan.

What is the Difference between a Home Loan and a Mortgage?

For all intents and purposes, to the general population, the terms “home loan” and “mortgage” are used interchangeably. They do differ, however. A home loan is simply a relationship between a lender and a borrower for the purpose of purchasing a home. It is the money advanced from the lender to the borrower in order to purchase a property outright. The borrower must then repay the lender on an agreed schedule.

A mortgage is a type of loan that is secured with either real estate or personal property. When a home loan is approved, the property itself is the collateral that secures the loan. The mortgage is the legal document that protects the lender’s security over the loan.


What is a Bad Credit Home Loan?

A bad credit history can make gaining approval for a home loan or mortgage challenging, particularly with traditional lenders like banks. Bad credit home loans and bad credit mortgages are offered by lenders who are more flexible with their policies than traditional home loan providers. They allow you to borrow money for the purchase of a home regardless of a bad credit history. Applications are considered on a case-by-case basis, considering all circumstances and taking a commonsense approach to lending.

How Can Universal Finance Help ?

Universal Finance is a South Australian finance company, experienced in all areas of finance and lending, including offering effective bad credit home loans to clients throughout Australia.

We provide bad credit mortgages to clients who do not meet the bank’s lending criteria due to a bad credit history. We consider whether defaults on your record have been paid in full, the circumstances that led to your receiving a bad credit rating, and your ability to pay back your loan. From circumstances including debt consolidation to ATO debts, bankruptcy discharge, or paid or unpaid defaults, we have the solution for you.

Choose Universal Finance TODAY

Whatever the reason behind your bad credit rating, we will consider your situation and your application for a bad credit home loan. We are an understanding lender that offers bad credit mortgage solutions to suit your needs. Contact us today to learn more and explore your options.