Bad Debt or Bad Credit Home Loans (NZ)

Banks follow strict lending rules. Even a small missed payment can raise red flags. When assessing your application, they look closely at:

• Debt vs income – they want to see whether you can service the mortgage and other debts.
• Card/Loan limits and balances – limits count toward affordability.
• Repayment history – do you have arrears, dishonours and defaults
• Income type and stability.

If the numbers don’t stack up under bank models, banks may decline your loan. However, “declined” does not mean “impossible”. It usually means we may need to look at a different pathway or restructure debts before re-applying.

If a bank has declined you, see Bank Said No for the safest next steps before re-applying.

Many Kiwis think getting approved for a home loan with bad credit is impossible. With the right structure and lenders, it can be achieved. Past debts may also feel like a financial trap. But, they don’t have to end your dream. The best pathway depends on your situation:

• Non Bank Lending – they do case-by-case assessment and provide faster decisions (while we build a path back to a main bank).
• Debt Consolidation – simplify multiple debts into one repayment to improve cash flow and serviceability.
• Credit repair and planning – we’ll help you tidy up your file, manage repayments and set milestones to refinance to a main bank.

Some borrowers use non bank lenders as a stepping-stone. These lenders often take a more flexible approach than banks. Read more about how this works in our Non Bank Lending services page.

Consolidating multiple debts into one structured loan can lower the rate you pay on short-term debt and simplify your budget, improving approval odds. Learn more about our Debt Consolidation services.

Prioritise high-interest card balances first – interest compounds quickly.
Make all payments on time to strengthen recent conduct – late or missed payments hurt approval chances.
Manage student loan commitments – banks model monthly obligations alongside your mortgage.
Avoid new credit applications and reduce unused card limits since limits impact affordability (even at $0 balance)

Once we put the right structure in place, you’ll likely have one repayment and a single rate to manage, reducing the risk of future missed payments and helping your credit recover.

As brokers, we know which lenders are open to working with clients who’ve had credit issues. Here is how we support you. We:

Review your credit file without unnecessary applications.
Identify suitable lenders (non bank or specialist lenders) with realistic approval odds.
Model debt consolidation to improve your position.
Map a clear plan to rebuild your credit and return to a main bank.

At Platinum Mortgages, our focus is turning “no” into a pathway forward, no matter your situation.

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