"Credit Impaired" Borrowers

Should any borrower have a default, judgment or bankruptcy noted on their CRAA (Credit Reference Association of Australia), they can expect difficulties in obtaining the 'prime' loans that are available to borrowers with no CRAA problems. For example, a borrower with no credit issues may obtain a housing loan up to 95% of the purchase price with a prime lender, whereas a borrower who was discharged from bankruptcy only one month ago may not be offered a loan at all. Most prime lenders' policies state that ex-bankrupts must be discharged for a minimum of 1-2 years. However, these borrowers may be able to obtain loans immediately after being discharged through sub-prime lenders.

Most lenders either specialize in the prime lending market OR they specialize in the sub-prime lending market.

Home Loan Connexion has several sub-prime specialists on its Panel, which again gives our clients choices that they would not have if they approached a Lender directly.

So what's the bottom line? If your loan has been declined, don't despair…maybe you're just not in the 'ideal borrower' category for that particular lender. For another lender you might be the 'perfect borrower'!