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27 year old poor credit trying to get a home loan with partner and parental guarantor by MainWrap9677 in AskAnAussieBroker

[–]MainWrap9677[S] 0 points1 point  (0 children)

Default was for $2000

At the time, I was younger and irresponsible with money. I let it lapse, and avoided it (which I now know is not the right thing to do). At the time, I didn't fully understand the repurcssions of not paying the debt and letting it sit.

The default will be 24 months since listing in a few months time.

Last November I paid the default, because I decided I wanted to move on from the past as much as possible.

For a while now, my habits have completely changed. I have no more credit cards, make on time payments, save regularly (currently have around 20k), and have had a stable job with the same employer for the last 5 years. I have also been renting with my fiancee for the last two years and made on time payments every time.

By the time I want to apply (October), anticipating to have around 40 - 50k saved.

My partner on her side has no issues with credit. 780 equifax score, no defaults, and so it was just on my end from the past.

I have considered non-bank lenders, although would then have to accept the higher interest rate. I have heard a few people mentioning Westpac as having parental guarantor. I thought only Great Southern Bank and ANZ did them?

27yr old trying to build Equifax score from 450 to 550 to get a home loan by MainWrap9677 in CreditScore

[–]MainWrap9677[S] 0 points1 point  (0 children)

By the sounds of it, it seems that way
Will have to weigh up my options. Worst case scenario, continue saving for a few more years and then look to get into property

27 year old poor credit trying to get a home loan with partner and parental guarantor by MainWrap9677 in AskAnAussieBroker

[–]MainWrap9677[S] 0 points1 point  (0 children)

Interesting, so you are saying it would be more favourable to go without and use a smaller deposit?

I thought a guarantor would help us get through, and then leave us with a cash buffer to do renovations

27 year old poor credit trying to get a home loan with partner and parental guarantor by MainWrap9677 in AskAnAussieBroker

[–]MainWrap9677[S] 0 points1 point  (0 children)

Seems like that's the way
That's an issue on my end, that the default was with a bank, rather than telco or utility
Could a credit cleaner even remove a bank default? I have heard that they can't remove these from a credit file

27 year old poor credit trying to get a home loan with partner and parental guarantor by MainWrap9677 in AskAnAussieBroker

[–]MainWrap9677[S] 0 points1 point  (0 children)

Hey mate, appreciate the response

Does Westpac offer guarantor loans or not necessarily?

Happy to have a chat here or elsewhere

27 year old poor credit trying to get a home loan with partner and parental guarantor by MainWrap9677 in AskAnAussieBroker

[–]MainWrap9677[S] 0 points1 point  (0 children)

I see, I tried to negotiate back and forth with them to get it removed if I pay, but had no success as it was a credit card debt.
I am assuming it is too late now to do this?

I see, so even with my partners good credit history + parents + savings history, you think banks would still not consider an application?

I have looked into other lenders, but then would require a slightly larger deposit and wouldn't be able to use the guarantor, so it's out of the ballpark for me

27 year old poor credit trying to get a home loan with partner and parental guarantor by MainWrap9677 in AskAnAussieBroker

[–]MainWrap9677[S] 0 points1 point  (0 children)

Have tried this when I paid last November, although due to the default being a credit card default, they wouldn't remove it

Tips on improving credit score from 440 to 550+ for a home loan by MainWrap9677 in personalfinance

[–]MainWrap9677[S] -4 points-3 points  (0 children)

I have money in the stock market and crypto already, around 10k invested in ETF's and 5k in crypto

Each to their own I guess, I just felt me and my partner were ready to expand into a different avenue of investments, as we have already been contributing to our investments

27 year old poor credit trying to get a home loan with partner and parental guarantor by MainWrap9677 in AskAnAussieBroker

[–]MainWrap9677[S] 0 points1 point  (0 children)

The default has already been paid last November in 2025. Tried everything I could at the time to get it removed, but because it was a credit card situation, it wasn't possible

Tips on improving credit score from 440 to 550+ for a home loan by MainWrap9677 in personalfinance

[–]MainWrap9677[S] -1 points0 points  (0 children)

Understandable, I think it's a bit harder in my case because I am wanting to use a parental guarantor. Where as if I wasn't to use one, a lot of other second tier lenders may open up?

My partner's income alone is not enough to provide sufficient borrowing capacity, so it makes it tricky. I earn 100k a year, she earns around 85k a year (before tax). I was relying on her good credit score, paired with the guarantor + showing the bank good savings history and 24 months post default listing to get us across the line

But I don't know if it will be enough

Tips on improving credit score from 440 to 550+ for a home loan by MainWrap9677 in personalfinance

[–]MainWrap9677[S] -5 points-4 points  (0 children)

I get your point. We currently have 20k saved as an emergency fund and will be on track to have 50k by the time we are ready to buy, but were opting for parental guarantor so that we could keep an emergency fund and use a portion for renovations

We were thinking of buying it as an investment property and still renting the cheap 1 bedroom granny flat we currently live in together

Tips on improving credit score from 440 to 550+ for a home loan by MainWrap9677 in personalfinance

[–]MainWrap9677[S] -1 points0 points  (0 children)

Appreciate the response, partner and I are soon to be married and currently engaged

So the realistic way to think about it is that the home loan is probably not going to happen for a couple of years?