Bad Credit And No Deposit Didn’t Stop Them From Buying Their Rental Home

A Quick Overview

“We have had three brokers totally mess us around, and now we have a week left on our Contract of Sale,” came a frantic message from Kate Harrison.

Kate and her partner, Liam, had a dream of buying their rental home – a place they loved – but they faced overwhelming challenges.

With no deposit saved, a damaged credit history, and a recent history of three brokers failing to deliver, their hopes were fading. They were trying to make it work under a family guarantee with Liam’s father as a guarantor. But time was running out, and they were at their wit’s end.

The Challenge: Credit Repair And Complex Financing Needs

One of the immediate hurdles was Kate’s credit, which had been affected by paid defaults from a previous relationship. While Liam’s earnings and his father’s willingness to act as guarantor were positives, past defaults raised red flags.

Additionally, their finances were complex: Liam was a self-employed engineer with additional income from a secondary role structured through a trust, and Kate worked in the healthcare sector, with wages that included various increments, making her income less straightforward to assess.

Not the Fix They Wanted, But The Path They Needed

At the end of their rope, Kate and Liam submitted an enquiry through homeloanexperts.com.au, feeling like this was their last shot.

Within an hour, Manish Rana, a mortgage broker at Home Loan Experts, contacted them.
His response was a stark contrast to the empty promises they had received before. Manish quickly assessed their situation and recognised the challenges ahead. With Kate’s credit history and the need for a guarantor, securing a loan was not feasible without addressing her past defaults.

As a result, Kate and Liam would not meet their Contract of Sale deadline; however, their landlord, understanding their situation and valuing their good relationship, granted them an extension. This gave them the time they needed to address their credit issues and restart the process.

Manish outlined a practical plan to address Kate’s credit issues and referred the couple to a trusted credit repair company. Although initially sceptical, Kate followed this advice, which proved to be their turning point.

The Solution: Expertise, Trust, And Tireless Effort

After about six weeks of working through the process, their credit report showed huge improvement, putting them in a much stronger position to move forward. With their progress, Manish turned his focus to finding the right lender – a critical step that required industry expertise and a strategic approach.

Manish identified a lender who could meet the couple’s unique needs; one willing to work under a guarantee structure, offer up to a 105% Loan-to-Value Ratio (LVR) to cover the purchase price and additional costs, and manually assess their application. Equally important, the lender had to have a reasonable turnaround time, ensuring the process wouldn’t stall.

Despite challenges such as self-employment documentation and variable incomes, Manish and his team worked tirelessly. They stayed in close contact with Kate and Liam, overcoming roadblocks and providing reassurance at every step to ensure the process was completed smoothly.

The Outcome: A Home Of Their Own And A Team They Can Trust

Today, the couple are proud homeowners. After weeks of near misses and mounting stress, they secured a mortgage with favourable terms, including features like redraw, offset, and extra repayment options to help them manage their finances.

Loan Product Structure:

Interest Rate: 6.13%

LVR, Term: 105%, 30 Years

Features: Redraw, Offset, Extra Repayments

More than achieving their dream of homeownership, Liam and Kate also found invaluable support from Manish and the Home Loan Experts team. Reflecting on the experience, Liam described the team’s impact as life-changing; he praised the team’s honesty and guidance through credit repair, and their ability to handle complex income structures.

This wasn’t just about securing a loan – it was about finding a team that went above and beyond to make Kate and Liam’s dream a reality. Even after the settlement, Liam and his partner feel confident knowing they have trusted experts to support them in the future.

Start Your Journey With A Team You Can Trust

When others said no, we found a way for Liam and Kate – and we can do the same for you.

Whether you have credit challenges, complex finances, or unique circumstances, our experienced team is here to guide you.

Call us today at 1300 889 743 or complete our free online assessment form. Your path to owning a home starts here, with a team that never gives up.