How to Get Mortgages in Auckland Despite Bad Credit

There’s no need for mistakes from the past to follow someone all the way into their future. A bad credit history won’t follow you forever, and it is possible for people with bad credit history to get a mortgage in Auckland and finally reach the property ladder. However, they may need to turn to a different type of mortgage broker business. Mortgage Masters and other non-bank lenders offer more flexible lending terms than banks.

Being Turned Down by Your Bank

A bad credit history may be reason enough for your bank to decline your loan application, even if you’ve banked with them for years. Banks have strict lending criteria, so any prospective lendee whose life path has strayed outside the beaten path may be deemed too unorthodox and risky to invest in. In these cases, the loan application will end abruptly. Usually, the decision is final without any explanation given for how the bank arrived there.

Understanding Bad Credit History

A bad credit history often comes from one-off circumstances that happened in the past, such as health issues or undertaking education. These may be for fair reasons that are unlikely to happen again, so it doesn’t make sense for this to prevent you from getting the mortgage or business loan you need today. Commercial mortgage brokers such as non-bank lenders have the financial expertise to get you your loan, no matter any bad credit history you may have lingering.

Non-bank lenders know you can’t change your credit history, but are more than capable of taking charge of your financial future. They are more willing to take into account your personal story and that your credit history may not be a reflection of your future ability to repay loans. If you have other strengths to showcase in your loan applications, non-bank lenders can work with you to find the best business loans and mortgages.

Low Rates, Just Not from a Bank

On top of their other benefits, non-bank lenders also offer affordable interest rates. If you had been wary of approaching non-bank lenders because you assumed the loans would be too expensive, shop around and you will be pleasantly surprised. New Zealand has a competitive market for loans that have driven the interest rates low, and this is true whether or not the loan is from a bank.

Like any other loan, the interest rates you can negotiate with your non-bank lender depends on the finer details of your case. As well as the story behind your credit history, this would include what the loan is to be used for, and whether the business or property investment will be able to cover your loan repayment obligations. These loans may be to cover short-term needs for an individual or business, or more long-term such as mature mortgages and small business loans. Request a Consultation with Mortgage Masters in Auckland today.

Talk to a Loan Broker

To book a consultation or ask any questions you may have about your finances, give us a call on 0800 630 7171.

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