For many people, buying a home using cash is often out of reach. A home loan can make this more attainable. This is often the simplest way to get access to your dream home. If your credit record is good you may have easier access to funds, but blacklisted individuals face a number of challenges when applying for home loans.
Being blacklisted may limit your options in various ways and can have a major effect on your finances and general wellbeing. Poor financial management and an unpredictable economy may lead to blacklisting. An over-reliance on loans is usually the main cause.
When you are blacklisted, credit bureaus are used as sources of information by brokers, lending institutions, landlords to determine your payment behaviour. The information uncovered determines your level of risk. Fortunately nowadays there are ways to get access to additional funds, even if you are blacklisted.
Getting a home loan as a blacklisted individual:
Banks don’t usually provide home loans to blacklisted individuals. Lending institutions may consider your application, but certain restrictions may apply.
You can improve your chances by taking steps to clear your credit record first. Debt counselling or debt consolidation may also be useful ways of getting your financial situation in order. These debt management tools can help you clear your credit record and improve your chances of qualifying for loans.
A large deposit is usually required from blacklisted individuals and a third party may be required to stand as surety.
There may be hidden costs involved, so it’s always advisable to read the fine print and clarify anything you don’t understand.
Be careful not to fall deeper into debt by managing your debt prudently. Getting a home loan from lending institutions that provide services to blacklisted individuals should be viewed as a second chance to do things the right way.