If I have PAID defaults on my credit file will my husband and I be able to get a no-deposit homeloan in Aust?

Question

My husband has a clear credit file and the defaults are from a few years ago. We wont to borrow substantially less than our borrowing capacity. We have the capacity to borrow 500k but only want to borrow 350k. Would this make a difference?

Answer 1

If you can show proof that the defaults have been paid then you shouldn't have a problem. Obviously, it would be preferable that there is only the one default, which can be put down to a mistake. Get all the documents you can (letters confirming payment and what not).

Answer 2

It's good you have made striations in clearing up your credit file. Even though you have I doubt you will qualify for a no deposit loan with old defaults on your credit. It would really depend on what your defaults are too. Are they late payments, charge-offs, collections accounts? This would really affect your odds also.