How a bad credit mortgage can work for first-time property investors

06 Jul, 2018
How a bad credit mortgage can work for first-time property investors

Despite what you may have been told by other lenders, first-time property investment with bad credit is absolutely a possibility - you just need to find the right loan. A bad credit score isn't the end of the investment dream when you know the right kind of lender to approach. 

For owners of a mortgage brokers franchise, it's a chance to help young Australians get onto the investment property ladder.

The advantages of property as an investment

For everyday people, the upside of investing in property is that it's an asset class for which more lenders will be willing to give you a loan. For most people, approaching a bank to get a loan to invest money in stocks is almost never going to work. The fact that lenders are are willing to give loans for property makes it a much more viable investment for everyday Australians. Even if stocks turned out to be a 'better' investment in terms of a returns, the fact most people aren't able to lever as much capital into them makes the point almost moot.

When people have bad credit scores, however, they may struggle even to get loans for investment property. Traditional lenders base much of their decision making on a customer's credit report - if it's not to their standards, a loan won't be granted.

How can a bad credit mortgage help?

For the first-time home buyer who's been turned down by a traditional lender, a bad credit mortgage from Red Rock can be a lifeline. We offer competitive rates that allow people to borrow up to 95 per cent of the value of their investment property. We look at each application on its own merits, instead of simply applying a one-size-fits-all lending criterion, which means we're able to help a lot more Australians reach their investment goals.

The Red Rock Mortgages difference

When you purchase a Red Rock Mortgages franchise, you get to be a part of making a difference for those real estate investors that otherwise can't catch a break. Instead of starting your own business, you'll get to join an established brand, with all the resources and benefits we've accrued over the years. Specialist lending like bad credit mortgages makes up around 1.5 to 2 billion dollars of the mortgage lending market in Australia, so there's plenty of opportunity waiting for you to grab it.

Does helping people that don't fit traditional lending requirements sound like something you'd be interested in making a career? To learn more about joining the Red Rock Mortgages family, apply for a free information pack today.