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Links Property Finance · Mortgage broker for credit-impaired borrowers, Sydney: Bad Credit Home Loans in Sydney

A default from a forgotten phone bill, a rough patch that left late payments on the file, a business that didn't survive.

Reviewed by Charles Touma Updated 18 October 2026

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Charles Touma, mortgage broker at Links Property Finance

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Bad credit? Which lenders still say yes?

A default from a forgotten phone bill, a rough patch that left late payments on the file, a business that didn't survive, credit history problems are more common than the polished world of bank advertising suggests. They narrow the field of lenders.

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They rarely empty it. What matters is matching your actual file to the lender that reads it the way you need it read.

Part of the complex lending guide.

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Check your loan ready score

Loan Ready Score

Answer. The score moves as you answer, and the plan underneath updates with it.

What this checks: your deposit, where it came from, your income type, credit history, debts and paperwork. It is not a lender assessment: your actual income figures, living expenses, the property and each lender’s policy are checked when you apply.

Your Loan Ready Score 89/100 Strong. Ready to organise pre-approval.

The plan below updates as you answer. Nothing is recorded unless you choose to email yourself the result.

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What to fix, in order

  • Keep building toward 20%Between 10% and 20% most lenders apply mortgage insurance on a sliding scale. The LMI calculator shows what each extra percent saves.
  • Assemble the file this weekendPayslips, statements, ID, in one folder. The document centre lists exactly what your situation needs.
Charles Touma, mortgage broker at Links Property Finance
5.0 from 32 Google reviews

Real outcomes for real borrowers.

★★★★★
I honestly couldn’t recommend Links Property Finance and Charles highly enough. After speaking with others who weren’t able to help me, Charles went above and beyond to understand my situation…
Evangelos Google review
★★★★★
Charles is an absolute star at what he does. He was straight-up, highly professional, and worked hard to secure a fantastic rate for our home loan. Communication was prompt and clear the entire way through. I would trust him with any future financial needs
Alan Google review
★★★★★
Charles and the team recently assisted us with a refinance of our investment property. Recommend Charles and the team to all
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Charles Touma, mortgage broker at Links Property FinanceCharles Touma, Mortgage Broker.

What do lenders see?

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  • Australian credit reporting is comprehensive: your file shows around two years of month-by-month repayment history on every credit account, alongside defaults, court judgments and bankruptcy records.Defaults and judgments generally remain listed for five years; bankruptcy stays longer. Lenders don't read the file as a verdict, they read it as a pattern, and the two questions they ask are simple: what happened, and what has happened since.
  • That second question is the one you control.Twelve months of clean conduct after a bad patch reads very differently from a file where the trouble is still live. Unpaid defaults sit worse than paid ones. A one-off event with a clear cause, illness, separation, a business closure, sits better than a slow scatter of missed payments with no story.

Mainstream lenders vs specialist lenders

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  • Mainstream lendersThey run largely automated credit scoring. A paid default under a few thousand dollars, aged and explained, can still pass with some of them, policy varies more than most borrowers expect, which is exactly where a broker across many lenders earns their place.
  • Specialist lendersThey assess the file manually and price for the risk. They will consider unpaid defaults, recent credit events, a discharged bankruptcy or a completed Part IX debt agreement, at a higher rate, disclosed. For many borrowers the specialist loan is a bridge, not a destination: hold it, pay it cleanly, and refinance toward mainstream pricing once the file has healed. Our panel of 70+ lenders includes both kinds, which is what makes the bridge plannable from day one.

Getting approved with bad credit: what to expect

No broker can promise approval, and you should walk away from anyone who does. Every declined application adds an enquiry to the file, the discipline of applying once, to the right lender, matters more here than anywhere else in lending.

What a credible process looks like: we pull your file with you before any application, so nothing surprises an assessor; we match the application to a lender whose written policy fits your events, rather than lodging hopefully; and we tell you plainly when the better move is to wait.

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Bad credit situations we regularly work through

Paid and unpaid defaults on utilities, telcos and personal loans. Late repayment history during a hard year. Completed Part IX debt agreements. Tax debt being brought current. Credit problems tangled with self-employed income, where a business's bad year marked the personal file too.

Discharged bankruptcy, some lenders will consider applications from the day of discharge, more join as time passes (the timeline and credit report rules are in home loans after bankruptcy).

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How do lenders read each credit issue?

  • Paid defaultsSmall, paid and explained defaults, especially telco or utility, pass with some mainstream lenders once aged. Larger or recent ones move the file to specialist lenders.
  • Unpaid defaultsUsually need to be paid or settled before any lender proceeds, and most want a written explanation with evidence.
  • Late repaymentsYour file shows about two years of monthly repayment history. A clean recent six to twelve months matters more than an old rough patch.

How does a credit-impaired application run, step by step?

  1. 1
    Read your credit report firstFree from Equifax, Experian and illion, so nothing in it surprises the lender.
  2. 2
    Fix what can be fixedPay or settle defaults, set up payment plans and dispute errors before applying.
  3. 3
    Write the explanationWhat happened, why it is behind you, with evidence.
  4. 4
    Apply once, to the right lenderEvery declined application adds another enquiry, so the lender is chosen first.
  5. 5
    Refinance laterAfter 12 to 24 months of clean conduct, a move to mainstream pricing is often possible.

Common questions about bad credit

Can I get a home loan with a default on my file?

Often, yes, it depends on the size, age and status of the default and the strength of the rest of your position.

A small, paid, aged default with a clear explanation can still fit some mainstream lenders; larger or unpaid defaults generally mean a specialist lender at a higher rate. The only way to answer for your file is to read your file, which is where we start.

How long after bankruptcy can I apply?

Once you are discharged, with some specialist lenders, usually with a larger deposit and higher pricing at first. The field widens as the discharge ages and your conduct stays clean; mainstream lenders generally want it well behind you and off the file.

Will applying hurt my credit score?

It can: every formal application places an enquiry on your file, and a cluster reads badly, especially on an already-bruised file. That is why we assess against lender policy first and apply once, deliberately.

Are bad credit loans just a trap of high rates?

They cost more, but they are not always a trap: for some borrowers, buying now at specialist pricing and refinancing after a period of clean conduct beats waiting years while the market moves.

For others, waiting and repairing the file first is the better plan. We model both paths with real numbers before you choose.

Should I fix my credit file before applying?

Fix what is wrong, yes: genuinely incorrect listings can be disputed with the credit bureau or the Australian Financial Complaints Authority, free of charge. Accurate listings stay for their set period, so the plan then works around them.

Be wary of paid "credit repair" firms promising to remove accurate listings; accurate defaults generally cannot be removed early, and the fees are better saved for your deposit. We will tell you which listings are worth disputing and which need time.

Get advice on bad credit home loans

Thirty minutes with Charles: what your credit file says, which lenders read it your way, and whether now or later is the smarter move.

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Charles Touma, mortgage broker at Links Property Finance
Reviewed by Charles Touma Director & Mortgage Broker · MFAA member · Credit Representative 579003 under ACL 389328 About Charles · MFAA register · ASIC register · Complaints processEvery page is reviewed by Charles before it is published and checked against current lender policy and the official scheme pages linked where figures appear.

General information only, not credit or financial advice. All lending is subject to individual assessment and lender approval, no outcome is guaranteed. Credit reporting timeframes are general in nature; your own file is the authority on what is listed and until when.