How can you make the most of your bad credit mortgage?

Buying a home with a bad credit mortgage can be made far more rewarding when you buy in the right location. With the average credit card balance accruing debt in the country lying at over $2,000 according to, your credit score might not be as clean as you think, so accessing a traditional loan could prove difficult.

The Nielsen Think Smaller for Big Growth survey from June 2016 suggests that 56 per cent of global respondents think having a shopping centre in a convenient location (close to the family home) is a big factor in making shopping easier. In fact, 46 per cent rate grocery shopping as something they try to spend as little time on as possible. Having a property close to a supermarket could pay off.

Taking ownership of your bad credit rating and getting onto the property ladder will be more pleasant if you put time into choosing the best place to live. If you’ve got a growing family, then being close to school zones or a school bus route might be at the top of your list. Young professional couples are more likely to value being close to work to avoid long commutes. Even for an investment property, these are the sorts of considerations you should be thinking about.

Starting your property journey with a bad credit mortgage

You’re not alone with your bad credit rating. reports that there were over 16 million credit cards in use around the country in May 2016. The average balance that was accruing interest on those was more than $2,000.

If you’ve defaulted on your credit card repayments, for example, then instead of worrying about it, you should start taking steps to amend the mistake. One of the best ways to show you’re committed to making good on your credit rating is by investing in property. Regularly paying off your bad credit home loan is an active step toward repairing a credit file, plus you’ll be the owner of a house or apartment.

A report from The Guardian also finds that Australia has over $2 trillion in unconsolidated debt, with GDP sitting at only $1.6 trillion. That makes Australia the most indebted developed country in the world. If you want to take control of your financial position, then investing in property is the way to go.

Buying for your needs

Whether you’re buying a home to move into yourself, or want to build a rental portfolio, there are factors you should look at. Proximity to school zones is a big one for families in the same way that people who work in the CBD want easy access to their offices. You might have a large family with lots of cars, so off-street parking becomes the priority.

McCrindle Research’s The Renter of the Future report shows that 38 per cent of respondents saw allocated parking spaces as the top lifestyle feature they look for in a property. Behind that came the ability to have pets (32 per cent) and access to fast cable internet (31 per cent). Buying a rental property that has these features available is likely to improve your chances of finding tenants quickly.

However, you might also be buying for your own desires. Modern architecture, a spacious kitchen, a big backyard – these are all things that you want in your own home, but aren’t necessarily going to affect your ability to rent out the place. If you aren’t buying an investment property, then consider your own wants and needs, and put them at the top of the list.

Property is a great way that you can get your credit file back on track, and a bad credit rating mortgage from Redrock is your entry into the market.