Bad Credit loans are loans available to borrowers who have previously been refused finance for not meeting the traditional lenders' criteria.

These can include:

• self-employed people
• contract and seasonal workers
• the credit impaired
• senior citizens
• overseas residents etc.

Some of the most common reasons for borrowers seeking a Bad Credit Home Loan are:

• Newly employed;
• Working part-time;
• Casually or as a contractor;
• Insufficient records of past savings or an inadequate deposit amount;
• Non-existent credit record;
• A change in life events such as recently divorced or temporarily unemployed;
• Age;
• Non traditional security;

Generally the Loan to Value ratio (LVR) on these loans is lower than that available to conventional borrowers who fit the standard lending criteria. However some lenders are prepared to lend up to 90% of the home value.

While non conforming home loans are generally offered at a slightly higher interest rate and/or fee structure than the comparable "traditional loan", borrowers who take up a Non Conforming loan can generally expect a fully featured loan with options including redraw, line of credit, variable and fixed rates etc.