Non Bank solutions with bad credit home loans in NZ

Challenges of Obtaining Home Loans with Bad Credit

Do you want to know more about getting home loans with bad credit? People with bad credit may find home loan applications difficult as their credit report may show the impact of a business failing, unexpected unemployment, Covid, a separation, reduced hours, a critical illness in the family or sudden hardship. Seeking a mortgage broker who can give expert advice and understanding will help towards gaining a bad credit home loan in NZ. 

Expert Guidance for Bad Credit Home Loans in NZ

Our team has helped so many home buyers apply for a home loan who have had financial hiccups resulting in a poor credit rating, poor repayment history or bankruptcy. These may be historic or one-off incidents that have affected standard loan applications through banks. By being open and honest about your financial situation, we can work with you to find solutions. This may mean that a Non Bank mortgage could be arranged to repay or refinance any other outstanding debts, including those high interest rate credit cards, so you can start afresh. Refinancing and consolidating debts is a great way to put all your bad credit problems in one basket, so you can then tangibly focus on paying them off as fast as possible. 

The good news is that accessing your KiwiSaver funds or a HomeStart Grant, as a deposit, does not require a good credit history! Additionally selling assets such as a car or boat can also help you work towards buying your first home. 

Non Bank Lenders: A Solution for 20% Deposits

If you have a 20% deposit, there are now options for bad credit home loans with Non Bank lenders. We are specialists in Non Bank home loans, mortgages, and finance, with years of experience. We have applied for mortgages for our clients who have a poor credit history. If you would like more information or want to compare non-bank options, contact one of our friendly team members today.    

The team at Non Bank has helped so many people buy homes with a bad credit score. Helping them purchase the home of their dreams instead of waiting years for a credit issue to go away.   

Are you ready to get started on your home loan application? Contact us now 

For further information on bad credit home loans, please see below.

Why choose Non Bank as your lender?

There is so much information out there when you’re looking for a home loan. It gets confusing, and things are even more blurry if you’re new to purchasing property. That’s where you need reliable, honest advice every time. Here at Non Bank, our team of expert financial advisors take the time to listen to your circumstances and needs. You’re not just another number with us, and we’re committed to providing clear, easy-to-understand advice.

Partnering with Non Bank isn’t just about getting a home loan. It’s about getting your finances back in order and taking control again. We provide a range of financial services, including business loans, bad credit home loans, debt consolidation and much more. We’re here to support you, and we cast our net far and wide to find the very best financial products and services for your unique needs.

Unlike many banks and lenders, we take a very tailored approach to our services. Rather than refusing to help because you’ve got adverse credit, our team takes the time to understand you and your situation. The reality is that many New Zealanders suffer from bad credit, and it’s not always through any significant fault of their own. Life happens, and we understand that at Non Bank.

Our links with Non Bank lenders allow us to explore a wider range of options for you. That’s why we take such a personalised approach. Every person and every family is different, and we want to provide the services you really need. So, don’t be discouraged just because a few lenders have knocked you back due to poor credit. Our team is here to help, and we’ll leave no stone unturned in finding a solution.

One of the biggest problems potential homebuyers face when trying to secure a home loan is saving for the deposit. In most cases, banks and lenders require a 20% deposit. This means you must save 20% of the home’s value before purchasing. With the cost of living pressures hitting almost everybody, this is never easy–especially when considering rising house prices.

Fortunately, there are other alternatives. If you’ve held a KiwiSaver account for over 3 years and meet other eligibility requirements, you can withdraw these funds for your first home. As long as you leave $1,000 in the KiwiSaver, you can take as much as you need for a first home deposit.

The New Zealand government also offers a first home grant of up to $10,000 to assist new homebuyers. There are eligibility requirements, of course, but these are just some of the options we can explore for you.

The bottom line: If you don’t currently have your 20% deposit saved, don’t despair because there are options.

Additional FAQ

Bad credit home loans are exactly as the name suggests. They are home loans for people with poor credit or repayment history. When applying for financial products and services, most banks and lenders check your credit history and put a lot of weight on the results. If your credit score isn’t good, it often means you won’t get a home loan. However, some non-bank lenders will consider home loans for people with a poor credit history, and it’s our job to find them for you.

Bad credit can come from a number of things, including unpaid bills, bankruptcy, failed business ventures, being late with repayments, dishonours on your bank statements, too many short term debts and many more. Basically, if you don’t look after your finances, you’ll have trouble getting a home loan. Until now.

Non Bank NZ is all about helping people with poor credit histories access home loans and other financial products. They look to solve problems with solutions.

Bad credit home loans don’t always come with exactly the same terms as a traditional home loan. For example, you may be required to pay a slightly higher interest rate because the lender is, at least according to the numbers, taking a bigger risk.

Like any financial product that requires an application process, we can’t give any guarantees about who is eligible for a bad credit home loan. Even non-bank lenders assess each application individually and each person’s circumstances are different. In addition, most banks and lenders have certain eligibility requirements for all of their products.

Our job at Non Bank is to match you with the lenders that best suit your needs. We’ve found that many non-bank lenders are willing to work with people who have a poor credit history. So, in effect, almost everybody is eligible for a bad credit home loan provided they meet basic citizenship, age requirements and have a reasonable deposit or equity in a property.

Unfortunately, there are many things that can lead to a poor credit history. But while banks and traditional lenders only look at the numbers in black and white, our team can help you find home loans that suit your unique circumstances. Here are just a few of the things that can cause bad credit:

  • Extended periods of unemployment
  • Defaulting on bills
  • Failure to pay debts
  • Failed businesses
  • Financial difficulty due to separation
  • Illness preventing you from meeting financial obligations
  • Incorrect credit records
  • Your income was impacted by Covid

The list above is not exhaustive but demonstrates how many ways you could find yourself with poor credit. The final point, incorrect credit records, is something that everyone should be wary of, because not all bad credit records are accurate.

If you have a low credit score, it can be overwhelming to work out how to fix it. While you could speak to a ‘credit repair’ company, it’s worth noting that nobody can change your credit history. They can give you advice and assist you, but your credit history always remains unless the records are incorrect.

For example, if you have a default record for non-payment of an electricity bill, but you’ve got proof you paid the bill, you may be able to have that record removed from your credit report. But if all the records are legitimate, you simply need to practise better financial management in the future and seek to improve your rating. Credit issues can take up to 5 years to drop off your Credit Check, which would then allow you to approach a traditional bank or refinance. 

Don’t be alarmed, though. Just because you don’t have the best credit history doesn’t mean you’ll never get a home loan. In fact, that’s exactly what we’re here to help you do.

There are numerous reasons to choose Non Bank for bad credit home loans. Firstly, this is our specific area of expertise, so we know exactly how to help you access the financial services you’re eligible for.

Banks and traditional lenders simply look at the numbers, and if you have a bad credit history, you’ll unfortunately be disregarded most of the time. However, we’ve developed relationships with a number of non-bank lenders that may be able to assist people with bad credit.

We take the time to understand your circumstances and needs, which is why we always provide the best advice. In addition to helping you secure a home loan, we also offer expert financial advice to help you get back on track.

You absolutely can get a home loan with bad credit. Just because things haven’t gone quite right for you financially in the past doesn’t mean you should be shut out of the property market. Here at Non Bank, we specialise in helping people with credit issues obtain home loans and reclaim their financial independence.

While we can never give guarantees because everybody’s circumstances differ, we are committed to helping all New Zealanders better manage their finances. So, if the banks and lenders say no, talk to our friendly team. We don’t judge, and we’re only here to help.

In any money-lending situation, the lender must assess the risk of lending to any individual. When somebody has a bad credit history, it indicates to the lender that they have had difficulty meeting financial obligations in the past. For that reason, they determine lending to that person is a higher risk. Therefore, they may seek higher interest rates to cover their risk effectively.

Interest rates for bad credit loans can be around 2-2.5% higher than traditional mortgages, but this will vary between lenders.

Not necessarily. Let’s say we find you a home loan with a non-bank lender, but you pay a slightly higher interest rate. If you maintain payments and a good financial record for a certain period of time, you may be able to apply for a traditional home loan with lower interest rates. This is obviously on a case by case basis, but Non Bank is always here to discuss your options and ensure the best result for you and your family.

Is a bad credit history stopping you from getting a home loan? With help from the friendly Non Bank team, you can retake control of your finances and find a home loan that suits your needs.