Getting a Home Loan with a History of Defaults

Struggling to get a home loan due to bad credit or a history of defaults? At Mortgage Field, we specialise in helping clients across New Zealand secure home loans, even if they have adverse credit histories. Whether you have missed payments, defaults, collections, or adverse conduct on your main transaction account, we may have the right solution for you.

How We Can Help You Get a Home Loan with Bad Credit

Step 1: Attempting Approval with Main Banks
We always aim to secure your home loan with a main bank first, as they typically offer the lowest interest rates and fees. However, approval criteria can be stricter depending on the severity of your credit issues. If your adverse history is minimal or outdated, you may still qualify for competitive rates with a main bank.

Step 2: Exploring Non-Bank Lenders
If main banks decline your application due to your credit history, we have access to a wide network of second-tier lenders in New Zealand. These lenders are more flexible with borrowers who have defaults or missed payments. While their rates and fees might be higher, they provide a valuable option for securing home finance when traditional banks say no.

Step 3: Getting You Back to a Main Bank
Our long-term goal at Mortgage Field is to help you improve your credit profile so you can refinance with a main bank at better rates. Once your credit history meets the standard lending criteria, we’ll work with you to transition back to a more favourable lender.

Is Your Credit Report Accurate?

Bad credit and defaults can significantly affect your ability to get a mortgage. Before applying for a home loan in New Zealand, it’s essential to check your credit report for any errors that might unfairly impact your borrowing capacity.

What Does Your Credit Report Include?

Your credit report records your payment history on:

  • Credit cards

  • Mortgages

  • Hire purchases

  • Car finance

  • Phone accounts

  • Electricity and utility bills

While most credit reports are accurate, mistakes can happen. Identifying and correcting these errors before applying for a mortgage can improve your chances of approval.

Common Errors to Watch For:

- Credit enquiries you didn’t authorise
- Payment defaults you’re unaware of
- Credit accounts you didn’t open

How to Check Your Credit Report in New Zealand

You can request a free copy of your credit report from the three major credit reporting agencies in New Zealand:

  • Centrix

  • Illion

  • Equifax

Reviewing your credit report regularly ensures that any inaccuracies are promptly addressed, improving your chances of securing a home loan despite a history of defaults.

Why Choose Mortgage Field?

At Mortgage Field, we understand that life happens, and past financial difficulties shouldn’t prevent you from owning a home. Our experienced mortgage advisers work tirelessly to find tailored solutions for clients with bad credit, defaults, or other adverse histories

Contact us today to discuss your situation and take the first step towards homeownership, even with a history of defaults.

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