{article.FeatureImageAltText}

Applying for a home loan with your partner is one of the biggest financial decisions you can make. It’s hard enough deciding what to eat for dinner every night, are you ready to commit to a 30 year loan together? If your partner has a bad credit score, this can make things even more complicated!

 

So, what are your options?

 

Check your credit score and credit report

First off, do you even know your credit score? Your credit score is an indicator of your creditworthiness, so it’s a good idea to check your credit score and credit report at all the major credit reporting bodies in Australia. It may help you identify the issues causing your low credit score. For example, you may have a default on your file, and you could choose to wait for it to drop off your credit report before applying for a loan.

 

Did you know that you can check your Experian credit score and credit file information at Credit Savvy? Bonus: It’s free!

 

Check your credit score now >

 

Remember, your credit score and credit report are just one of the factors that a lender uses to assess your home loan application. A great credit score doesn’t guarantee approval!

 

Do a full assessment of your finances

Get all your finances out in the open. The good, the bad, and the embarrassing. Is there something that could potentially stop a lender from approving your loan? You both need to know about it. With the outcomes of the Financial Services Royal Commission, lenders are tightening who they lend to as well as the amount they lend out. It’s going to be a lot harder to get approval for a loan than it was 5 years ago.

 

Check out alternative lenders and loans

While a standard lender, such as a bank, might not approve your mortgage, a non-traditional lender may be more lenient or have products that are more flexible for your circumstances. For example, Pepper is an alternative lender offering solutions for people who don’t tick all the traditional boxes for home loans.

 

Rethink your timeline

While it is the Australian dream to own a home, it may not be the right time to buy if the both of you are not in financial shape. Extending your timeline can not only allow enough time to pass for black marks to drop off your credit report, it can also give you more time to save up a larger deposit, save up for emergencies, or to help pay off other debts you might have before buying your home.

 

Talk to an expert

Navigating the home buying process can be quite challenging, especially if you’re a first home buyer. You might like to consider speaking to an expert, such as a mortgage broker or a financial advisor. These experts can help you assess your financial situation and the options that are available to you.

 

Ready to start comparing home loans? Check out the Credit Savvy home loan comparison service today.

 

Start comparing >

 

If you’re looking to speak to an expert, request a free appointment with an Aussie Mortgage Broker.