Home Loan Tips: Blacklisted and needing a home loan
When considering you home loan application, banks are always looking to ensure that their investment in you and your future is safe. The riskier the investment the less likely they are to approve the bond finance.
Therefor, a bad credit rating or blacklisting on your name can seriously hamper your ability to secure home loan finance.
But this does not mean this it is impossible to secure a home loan while you are working to clear any negative reports on your credit report.
The first step:
If you know you have a bad credit rating or are blacklisted, contact a Debt Counsellor. Your counsellor give your a private assessment and may actually be able clear your name.
There are a number of financial institutions that focus on supplying home loan finance to blacklisted clients.
These companies are much more accommodating than the usual banks, but there are some disadvantages. The interest rates offered by these types of lenders are usually very high and they may require that your take out extra insurance to cover your bond amount.
If you already own a property:
The best route you can take is to reduce your monthly expenses applying for a Debt Consolidation Loan. By paying off your personal loans and credit cards using a further loan from your bond you’ll
have to pay one account every month.
Your debt consolidation loan is usually at a much lower interest rate and your loan term is extended, which means you’ll lower your overall monthly payments.