If your application for first home buyers grant NSW or FHSS scheme was rejected, there are other loan options to consider.

Bank loans

Ask your local bank, of they offer home loans for people with credit problems. In fact, they may have specific promos for long-time account holders who meet their eligibility criteria. But, if they are only interested in people with high credit ratings, you may not get a positive response if your credit rating is low. Still, it is best to explore your options by visiting your bank—this way, you will have an idea of what other traditional banks may require of you. You can also check your local finance company, for affordable fist home buyer refinancing options. While some may not be interested in granting you a loan, others may consider your application, if you can prove that you have a stable source of income.

Lenders also look beyond the credit score itself. They may study your payment history, utilization ratio and credit mix individually or altogether. Some lenders would approve loan applications of people with poor credit rating as long as their payment history shows updated payments. So, even if your debt is high, you still have a chance of getting a loan as long as you have shown good repayment habits. It is also a good indicator if your debt management strategy. If you can handle your debts, pay them on time and avoid default despite limited income and high credit balances each month—you are a responsible borrower and you are most likely to get approved for another loan.

Online lenders

You can search the Internet to find the available lenders in your area offering home loan packages for first time home buyers. But, bear in mind that there are many loan sharks too. So, to be safe about it, check the lender’s websites, and read important information such as their company’s about page, their license and the people working for them. You can also receive a great deal of information from the testimonials online and offline—ask people in your area who have tried their loan products to know if they are good lenders. Verify the company’s address, financial information, if possible and never enter personal information -especially those details that people could sue to steal money from you. Always stay safe when browsing online—many scammers are trying to steal the identity of their victims to gain access to their bank accounts and credit accounts.


refinancing options online and contact online lenders 24/7 for more details about their loan products. Don’t forget to ask about the specific terms of the loan that you find interesting, like the APR and additional fees and charges. Since you will be applying for a loan secured by your home, or your equity, try to learn as much as you can about the rules on default, forced sale and other penalties should you miss several payments.

Compare various loan products because it is almost impossible to find similar loan products with exactly the same loan terms. Each loan product has a specific value—so don’t forget to look into the fine print, because lenders may slip in some additional cost that could harm your credit along the way. It can be in the form of additional fees or charges, fines or default provisions that will not only damage your rating but have the potential of stripping you off of your collateral.

Specialised second mortgage lenders

If you have poor credit but you want to get a loan, consider refinancing your first time home mortgage loan. By adding a second mortgage you can boost your credit scores with timely payments. You can also use the money for major home improvement projects. It also helps borrowers wipe out large credit card interest and consolidate current debts. Refinancing first home loan with variable interest rate into a fixed interest rate loan can also save you up to several thousands of dollars in interest rates.

The monthly savings off your monthly repayments free up some cash as you work your way up to financial freedom. But, not all lenders accept first home buyers with bad credit history. They will assess loan applications based on your equity, credit rating as well as job history. If you don’t have the required equity and credit score, your loan may be refused. So, before you file your loan application, read the credit provider’s requirements. It is advisable to look for lenders that prioritize home equity more than your credit rating.

Borrowers who fail to secure first home buyers grant NSW can opt for second mortgages to obtain money in a low-interest way. Make an enquiry with NSW Mortgage Corp today!