There are many different types of impaired credit. The main types are:

1. Mortgage arrears: Missed payments on your home loan. The more the number of missed payments you have had in the last six months then the more wary lenders will be. Generally, banks will not refinance your loan if you have missed just one repayment!

2.Bad credit history: Adverse listings such as defaults, bankruptcy, judgments, court writs or too many credit enquiries on your Veda Advantage credit file can make your application doubtful.

3.Lender credit history: Your past credit history with the lender you are applying for. Lenders have a very long term memory for the customers that they have had problems with in the past.

4.Unpaid bills or tax: Outstanding bills such as council rates or late tax bills are a type of bad credit history that may not initially show up on your credit file but may be visible on the supporting documents you need to provide.

5.Company in financial trouble: If you are the director of a company that is in financial trouble, receivership or liquidation then this can affect your personal credit history.

6. Over committed: If you have too many debts for your income or your total assets are less than your total liabilities then the major banks may assess you as being insolvent or beyond help.

A non-conforming home loan is a mortgage that does not conform to a lender’s typical credit policy. Borrowers who apply for non-conforming home loans may have poor credit history, saved up little or no deposit, or unable to show a strong history of earning income.

A non-conforming borrower is someone who does not fit the criteria of the mainstream lender’s underwriting criteria. Lenders view them as higher risk, which makes it more difficult for those borrowers to get a home loan. A non-conforming borrower may be someone who is:

• Self-employed

• Owns their own business

• Changes jobs regularly

• Nearing retirement

• Has fallen behind in mortgage payments

• Has poor credit history

• Has previously been refused credit

• Has had many applications for credit

• Has saved up little or no deposit

Yes, interest rates are higher on non-conforming home loans. This is because banks are taking on higher risk when lending to people who have higher than normal financial difficulties. That extra risk is reflected in the higher interest rate.

Although the interest rate is higher than a standard home loan, it is still much cheaper than a car loan, personal loan or credit card debt. By consolidating your debts, your monthly repayments will substantially reduce and you will be in a much better financial position.

Yes, in most circumstances their are financiers that can assist you . You generally need to have at least 25% equity (or a 25% deposit) on a property to securitise the debt

Although major banks and lenders will likely decline your application, there are actually non-conforming or specialist lenders out there that are more flexible than banks and standard lenders.

They will assess your home loan application on a case by case basis and listen to your story as to what went wrong and why you need debt relief. These lenders can often rapidly approve bad credit home loans to meet deadlines from the creditors.

The idea of bad credit home loans is to be a short to medium term fix, not a long term solution such as a second mortgage.

You may find that once you consolidate all your debts, your monthly repayments are generally lower irrespective of the interest rate, so it's a good way to get back on track.

Non-conforming lenders are far more flexible than the major banks. The interest rates that are offered on bad credit home loans reflect the risk to the lender. Therefore, the higher the risk of your loan, the higher the rate of interest the lender will charge you.

They assess applications for bad credit home loans on a case by case basis and will listen to your story as to what went wrong and why you need debt relief. These lenders can often rapidly approve loans to meet deadlines from the creditors.