How Much Can We Borrow? You can borrow up to 95% of the property value with specific lenders, but there are stricter lending criteria. If your partner has defaults, judgments, writs, or part IX debt agreements, the borrowing limit is up to 85% of the property value. 

Will We Get Approved? Yes, even if your partner has bad credit, you can still get a home loan. To increase your chances: 

• Save a larger deposit (up to 20% of the property value). 
• Avoid additional credit inquiries. 
• Consult mortgage brokers for specialized home loan solutions. 

Can My Partner and I Get a Mortgage? Certainly! If your partner has bad credit, you have options: 

• Apply as a solo applicant: Apply for a home loan on your own. Your name will be the only one on the property title. 
• Common Debt Reducer home loan: Improve your borrowing power by sharing living expenses and debts, considering the non-borrower’s self-supporting income. 
• One borrower, two owners: One person borrows on a jointly owned property (limited lenders accept this). 
• Apply with a bank considering small defaults: Some prime lenders may consider small defaults (financial and non-financial) under standard policies. 
• Apply with a specialist lender: Non-conforming lenders offer bad credit home loans with slightly higher interest rates. 
• Adjust your timeline/save a bigger deposit: If none of the above works, wait for the adverse listing to clear, save a larger deposit, and enhance your credit score. 

Accepted Types of Bad Credit: Specialist lenders consider various adverse credit listings, including too many credit inquiries, paid and unpaid defaults, judgments, bankruptcy, Part IX agreements, and ATO tax debt. 

Qualification Steps: 

• Obtain your partner’s credit report to identify issues. 
• Correct any incorrect information. 
• Contact specialist brokers for a full assessment and identify lender acceptance. 

Why Need a Bigger Deposit? Having a partner with bad credit may not be the main issue; the challenge is the deposit. You’ll need at least 10%-20% of the purchase price as a deposit, with a larger deposit improving approval chances. 

Possibility of Higher Interest Rates: Yes, initially, you may pay a higher interest rate with a bad credit home loan. However, these loans enable immediate home purchase, with an option to refinance in a few years when the credit file improves. 

What to Do if Declined: 

• Work on improving your partner’s credit score. 
• Wait for adverse listings to fall off your credit file. 
• Save a larger deposit. 
• Demonstrate stable employment and income. 
• Avoid additional credit inquiries.