Bad credit home loans are home loans approved for borrowers who have a poor credit rating or no credit history at all.  They’re provided by online lenders who specialise in lending to customers who other banks reject.  There are many reasons why you may have ended up with a bad credit score, such as paying your bills late or defaulting on a loan.

In Australia, such loans are commonly referred to either as bad credit home loans, sub-prime loans or non-conforming loans.  The term ‘non-conforming’ also applies to people who have just arrived in Australia and don’t have a credit history.  Not all non-conforming loans fall into the bad credit category; these terms can also refer to self-employed people who don’t have the required two years of tax returns or to others who don’t fit within standard credit measurements for any other reason. 

These mortgages are only offered by online lenders specialising in bad credit borrowers, rather than banks and big lenders who offer standard home loans.  They look at loan applications differently from the way that big banks do, assessing loan applications on an individual basis and looking at the person behind the numbers, rather than applying strict across-the-board lending criteria which may trip up many potential borrowers.