spring specialspring special

Bad Credit
Home Loan

If past financial issues are holding you back, move on with your life with a home loan that takes your situation into consideration.

Features and Benefits

  • Roll all your debts into your home loan

    You can refinance and payout your smaller debts, allowing you to focus on a single repayment at home loan interest rates.

  • Get into the property market now

    You can borrow up to 90% of the value of the property to a maximum of $2.5m, for your own home or an investment property.

  • Take advantage of all the features

    Features no ongoing fees and a 100% offset account to get your savings working for you. Plus you have easy access to your cash via BPAY®, Debit MasterCard® and EFTPOS.

  • Flexible options so you are in control

    You can make unlimited extra repayments and redraw for free online, plus you can choose of weekly, fortnightly or monthly repayments.

For more information on our 100% offset account, BPAY®, Debit MasterCard® and fees click here. For other fees and charges that may apply contact us.


  • Application$0
  • Valuation $286 per valuation
  • Annual $0
  • Settlement $949
  • Discharge $300 plus legal

Take advantage of our special rates this spring

Our Spring Special is a limited time offer for new applications received from 1st September 2016.


Calculate Your Repayments

As a minimum you will need to:

  • Be currently employed or self employed with a steady income

  • Own a property already or have at least a 10% deposit if you are looking to purchase

Frequently Asked Questions

    1. There are a number of things that may mean you have a bad credit history. These include:

    2. Credit report defaults
      If you have a bill that is overdue by more than 60 days and you haven't made an arrangement to pay it off, the business that you owe the money to may list it on your credit file. To do this it has to be more than 60 days overdue and more than $150.

    3. Multiple credit enquiries
      Every time you apply for credit or a contract with a utility company, this application will be recorded on your credit report. A large number of enquiries over a short period could give lenders the wrong impression and since they are unable to determine whether you were approved, declined or changed your mind, they may assume the worst.

    4. Poor repayment history
      If your lender provides your repayments history to a credit reporting agency, it will be listed. Repayments over a two year period will be shown and they will be able to see if they were made in full and on time. This information will be used by lenders to assess your credit worthiness.

    • Not paying bills on time
      Missing repayment deadlines or not meeting repayments at all is a red flag for most lenders. The more credit defaults you have on your credit file, the less appealing you will look to a potential lender.

    • Submitting too many credit applications
      Submitting a home loan or credit card application to multiple lenders will not improve your chances of getting approved, but it could actually hurt your chances. Multiple credit enquiries could give lenders the impression that you have been declined several times and they may treat your application more cautiously. It is important that you only submit a formal application with the lender you intend to go with.

    • Illness/loss of job
      Illness and loss of job are very common reasons why people have financial issues that impact their credit reports. Suddenly being without an income can place serious financial strain on a person's financial situation and may cause them to fall behind quickly.

    • No credit rating
      You may assume that not having any debt will work in your favour when it comes to applying for a home loan. However, if you do not have a history of making repayments, lenders will not be able to determine whether you are a good risk or not and as a result, will have to be more cautious with your application.

    1. Difficulty being approved for credit
      Having a less than perfect credit history may mean you will be seen as a high risk borrower. Lenders may not be willing to accept your application or if they do, restrictions may apply.

    2. Higher interest rates
      Because they are taking on a higher risk borrower, lenders may have a higher interest rate for those with bad credit. So while you may be approved, your monthly repayments will be higher than those with a standard home loan.

    3. Less flexible options
      Most lenders offer a variety of features and options with their home loans. However, there may not be as much choice if you have a bad credit home loan.

  • Certain lenders will consider borrowers with bad credit. These loans are specifically tailored to assess the level of bad credit and offer a rate and fees that match the level of risk that the lender is taking. These are very different to home loans advertised by the big banks and mainstream lenders.

    Borrowers will be expected to have saved a deposit of around 20% or more of the purchase price of the property or have a similar amount of equity in their current property. The loan may have a higher interest rate and not come with as many features but on the upside each loan is considered on a case by case basis. The more positives you can show about your situation despite the blemishes on your credit report the better.

    Find out more about how to find the best bad credit home loan here.

  • Yes. The type of home loan will depend on your financial history. For example, if you ended up in bad credit to a one-off life event such as a divorce, then it may be easier to argue that you are a good risk. But, no matter the reason you ended up on bad credit, you need to take steps to give yourself the best chance of being approved:

    • Get your finances on track
      Even though you can't change your past, you can show lenders that you are making an effort now. Try to reduce your outstanding debt as much as possible, meet every bill repayment on time and also have a budget to show you can manage your money effectively.

    • Full disclosure
      Being open and honest about your financial situation will work to your advantage. Lenders need to be aware of all expenses, income, assets as well as any defaults. Trying to hide information will only hurt your application. If a lender uncovers information that you did not disclose, it could put you in a bad position.

    • See a specialised lender
      There are a number of lenders who are able to provide specialised loans for those with a bad credit history. As you may not fit the criteria of a mainstream home loan, they will find a solution that suits your own unique situation.

    • Just because you have bad credit, doesn't mean you can't get a home loan. Check out the top 5 bad credit home loan myths we've busted here.

    1. Just as with mainstream home loans, specialised bad credit home loans can be used to purchase a property or to refinance an existing loan.

    2. Purchase a property
      Being able to purchase a property may enable you to get on the property ladder sooner and stop renting.

    3. Refinancing
      Refinancing may be an opportunity to consolidate debts that have built up. If you only had to focus on one repayment it may take the pressure off having to meet multiple payment deadlines on debts with high interest rates.

    4. Often bad credit home loans are designed to get you back on your feet and help you move forward until your bad credit issues no longer appear on your credit history. The longer the time has been since you have had mortgage arrears, discharged bankruptcy or defaults, the better chance you have of getting a home loan. Then once these blemishes drop off your credit report, you will be free to refinance to a mainstream loan and be able to show a solid repayment history.

  • Specialist lenders are different than the major lenders. Instead of just checking to see whether you tick the boxes for their home loan assessment, a specialist lender will take the time to assess the application differently and can be more flexible with their policies.

    A specialised lender deals with unique cases every day and will more likely be able to understand your situation and provide you with a competitive solution.

  • There are a number of lenders who specialise in bad credit. They will have varying levels of fees and interest rates depending on your situation. Doing thorough research will ensure that you understand everything that will apply to you and what happens if you struggle to meet the repayments.

    It is also important when you are doing your own research that you check the experience of others with that lender. Review sites are a good place to start and can help you put together a list of questions to ask the lender based on this. Also, check that the lender is licensed. All credit providers must be licensed with ASIC in Australia.

    1. If you have had trouble in the past with managing your money, you should consider avoiding these features to keep the temptation of spending away.

    2. Interest only
      While just paying the interest may help keep repayments low, you are not getting any closer to paying down the debt owing or building up any equity. At the moment, interest rates are at a historic low, which means it’s a prime time to pay as much off your home loan as possible. Anything that you pay above the interest amount will be available to redraw. If you want to take this temptation away, choose a principal and interest loan so that you are guaranteed of building up equity without being able to access it.

    3. Line of credit
      This loan allows you to access the equity saved in your property up to a certain amount. Some lenders may also not require repayments until it reaches its limit. Similar to an interest only loan, if you are prone to overspending you may not get ahead.

    4. Repayment frequency options
      Loans that allow you to choose how often and when repayments are due can help with budgeting. Choosing a repayment date a few days after you are paid can help ensure that there are funds available. If you are paid weekly, you may choose this frequency but if you are paid fortnightly or monthly, changing the timing to this can be a real life saver.

    1. Some features that come with a home loan could help improve your financial situation, especially if you have had some financial trouble in the past:

    2. Extra repayments
      This feature is great for those eager to repay their home loan as soon as possible. Being able to set your regular repayment higher than what is required as well as making one off deposits when you have spare cash can help you make inroads into paying off your home loan sooner.

    3. Offset account
      Borrowers are able to deposit all their savings into an offset account and this money can help reduce the amount of interest charged on the loan. This money will be working for you until you need it.

  • Bad credit stays on your credit record for a number of years but over time these drop off and you once again have a clean credit file. By having a perfect repayment history and having your finances back on track, you may be able to refinance to a standard home loan and take advantage of more competitive interest rates and flexible features.

    Getting the right advice is the best place to start. The team at State Custodians are experts when it comes to bad credit home loans and have the knowledge and experience to advise you on your options.

    Call on 13 72 62 or leave your details here for a Lending Specialist to contact you. You can also use our Pre-qualify tool to get a head start and see whether you qualify for one of our loans.


See if you qualify in 2 minutes^


Why Choose State Custodians?

  • Online Expertise

    With access to a specialised range of options for borrowers with credit issues, we can look for a home loan that suits you

  • Quick Response

    From a quick question to a detailed discussion, no need for appointments, just phone, email or Live Chat

  • Personalised Service

    A dedicated Lending Specialist can do the hard work for you, from exploring possible options to simplifying the application process

  • Quality Assured

    We hold a full credit licence and are a member of the MFAA and the Credit & Investments Ombudsman




The team at State Custodians helped us to save our home when no other broker or lender would even speak to us because of the state of our finances. They made it all happen when we were told over and over again there was no option but to surrender our home to the bank. We will forever be grateful to them and will recommend there services to anyone who asks.

Balga, WA

Quick & pain free

We can't believe how quick & pain free this process has been and it's a real tribute to the team that has been working on our difficult situation. This outcome will be life changing for us and we are so grateful.

Djugun, WA

Highly recommended!

State Custodians were helpful and understanding. I felt as if there was no possibility for me to purchase my own home because of my past financial mistakes. State Custodians listened to me and provided me with options. They helped me throughout the entire loan process. If you have made financial mistakes in the past and your options are limited. Speak to the team at state custodians, they will be able to help you out.

Dianella, WA

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Our team of experienced Lending Specialists are ready to help you.