Credit Impaired Finance
Some clients fall outside traditional lending criteria because they have adverse credit history such as defaults on payments for goods and services, court judgments against them, or they have been bankrupt. Capital Growth has a variety of viable alternate credit impaired options available for you to recommend to your clients.
How do these loans differ?
A credit impaired loan, or ‘non-conforming loan’, differs from loan products readily available at lenders' branches. Lenders have established a matrix for non-conforming characteristics that define the level of credit impairment - from clear to severe. This level of impairment, and the amount of property equity, determines the end interest rate applied by the lender, and the products available to the client.
Although credit impaired rates are often higher than standard loan rates, they are more cost effective compared to alternative options such as:
- Losing a home at a mortgagee auction
- Proceeding to bankruptcy
- Consolidating Existing Loans in Arrears (incurs high penalties)
- Using expensive credit cards or store cards
Who can use this service?
This service is available to the following potential client scenarios:
- Clients who have tax debts
- Clients with defaults or judgments
- Clients with a prior bankruptcy
- Clients with part IX or X bankruptcy
- Clients with diverse income sources or who are unable to fully document their income
- Clients with irregular income
- Clients who have a gifted deposit
- Self-employed clients
- Small business owners