Credit impaired

Historically, borrowers who had incurred some form of credit impairment found it virtually impossible to get a loan from a mainstream lender.

Today, there are some non-bank lenders who specialise in lending to credit-impaired borrowers and who charge the borrower a higher interest rate because of the perceived higher risk. The amount of the higher interest rate depends on the degree of credit impairment and the LVR. The greater the degree of credit impairment and the higher the LVR, the greater the risk to the lender, and consequently, the higher the rate of interest charged to the borrower