My husband and I currently have a mortgage that is well under control, around $25,000 ahead in repayments. We have no other debt other than our current mortgage which is around $215,000, the house is valued at $350,000. We earn $110,000 per year combined.
We wanted to build a new cheaper house and have a smaller mortgage and initially the bank was prepared to throw as much money at us as possible. That was the case until they did a CRAA report which showed 2 paid defaults , around 3 years old. All of a sudden we were tainted, a risk, seedy, evil, bad - you get the idea.

What sort of country are we living in when people who are currently paying double repayments - can't borrow borrow less than what our current mortgage is?

Might as well throw the towel in!

I certainly understand your frustration as we get many enquiries from customers like yourself who are having trouble getting a home loan due to small defaults even when you have satisfactory explanations.

The main reason your application was declined is that you most likely failed the lender’s credit score. Your credit score is a lender’s automatic calculation of the risk of your loan application based on your credit history, employment, stability, income and security for your loan. The banks have their own formula for calculating a credit score, for this reason each lender will view the risk of your application in different ways.

Having said that it is still possible for you to get a home loan with a bad credit rating or bad credit score as we use a unique approach to find the most suitable lender for your situation:

• Firstly we look to see if we can find a prime lender such as a major bank that would not assess you as having a problem with your credit rating.
• If we can’t get your loan with a major lender then we will look for non-conforming lenders or specialist lenders that can consider your application.
• Once we know which lenders can help we will then compare the loans available from them and come back to you with the 2 or 3 more competitive mortgages.
• We will only help you if you will benefit from refinancing or purchasing. We are not in the business of giving people loans that they cannot afford or do not need.

If you would like the help of one of our mortgage brokers then please call us to discuss your situation further.

Cheers
Tina