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Everyone dreams (and deserves) to be able to have a home of their own. However, one major hindrance is the lump sum amount of money needed to build a house. This is why many would-be homeowners choose to take the other route available and decide to apply for a home loan.

However, if you have bad credit, you may be wondering if you will still be able to apply for this type of loan. The good news is that it is still very much possible for a person with bad credit to apply for a home loan! The key is finding a lender who will offer feasible and affordable loans to people with bad credit.

Buying a Home in Australia: Get a Home Loan with Bad Credit

If you feel that you do not have good enough credit to apply for a home loan, think again! Although there may be certain lenders that are strict, some may be a little more lenient than others on this front. 

Needed Documents to Apply for a Home Loan with Bad Credit

One crucial thing you need to do is procure the necessary documents while looking for a lender. This way, when you find a lender willing to accept your application, you will be ready with the papers straight away. Early and timely submissions of these documents are an integral part of having your home loan approved, especially if you have bad credit when you apply. This is why you need to get your hands on these documents as soon as you decide to start looking for a lender.

1 - Evidence Supporting That You Have Income

These documents will come in the form of payslips, tax returns, and other documents that will serve as proof that you have sufficient funds and income to be able to pay off your loan later on. Take note that these documents have nothing to do with your credit score, but they will prove to your lender that you will be able to pay your loan on time.

2 - Identification Documents

Your lender will ask you to submit proof of identity as well. For example, they may ask for your Medicare card, Driver’s License or passport. These documents will help prevent fraud when it comes to applications for home loans. 

3 - Financial Evidence

Your lender will also need these documents to establish that you have funds to pay off your loan down the line. Your lender may ask for your bank statements and proof of savings. 

4 - Proof of Current Assets and Obligations

If you have any active personal loans or credit cards, you may also need to give information on these obligations. These will give your lender an idea of how you handle your finances.


Although many may think that the process to apply for a home loan with bad credit may seem like trying to find a needle in a haystack. However, once you find the right lender, you may be surprised to find out how simple and straightforward the process can be.

If you need a home loan but have bad credit, come to Wealthy You! We are an Australian Mortgage Company servicing Sydney for almost a decade, and because of this, we can offer you a variety of mortgage solutions to meet your specific financial needs. As an alternative lending specialist, we make refinancing your home simple. Apply for bad credit home loans with us today!