Client Case Study
Refinancing With Poor Credit: How One Family Found Room to Breathe
“Our job is to show you what’s possible.
Your job is to decide what’s right for you.”
Can you refinance with poor credit and consolidate debts into your home loan? Depending on your circumstances, you may have options.
For one family, refinancing helped reduce 15+ financial commitments down to just one, while reducing monthly repayments from over $7,400 to approximately $6,200.
That’s around $1,200 per month back into the family budget—and a lot less financial juggling. Most importantly, they made the decision to ask for help.
When Family Had to Come First
Our clients found WhiteStar after searching online for help.
They had been through a difficult period where caring for family meant work needed to stop for a time. While income reduced, the mortgage, bills and everyday expenses continued.
By the time they returned to work, they were playing catch-up with arrears, school fees, poor credit and more than 15 financial commitments.
Then interest rates and living costs increased. Even with income restored, keeping up with so many individual repayments while trying to catch up was becoming impossible.
Can You Refinance With Poor Credit?
Poor credit, arrears or defaults don’t necessarily mean you can’t refinance, but they can reduce the lenders and home loan products available.
Kelly worked closely with the family, developing a plan and carefully working through their options. Bluestone, a non-bank lender, provided a refinance solution that suited their circumstances.
Non-bank and specialist lenders play an important role in Australia. Not everyone fits neatly within standard bank lending criteria, particularly after financial hardship or when life has created an out-of-the-box situation.
Having lenders prepared to consider these circumstances can provide people with an opportunity to get back on their feet.
The Result: From 15+ Repayments to ONE
The difference wasn’t just the interest rate or the loan itself.
Before
15+ financial commitments
Over $7,400 per month in repayments
Arrears and outstanding expenses
Poor credit limiting their options
Constantly juggling which payment was due next
After
ONE manageable repayment
Approximately $6,200 per month
Around $1,200 per month improvement in cash flow
Outstanding commitments addressed
A clear plan for the future
For a hardworking family already juggling work, family and everyday life, simplifying 15+ commitments down to one made their finances much easier to manage.
It wasn’t just about saving money.
It was about stopping the constant juggling and finally having room to breathe.
Step One Now. Step Two in Six Months.
The refinance is Step One, not necessarily the family’s final home loan.
Our team will stay in regular contact over the next six months, checking in on their progress and keeping the plan on track.
At around six months, Kelly will review their lending again. Subject to their circumstances and lender criteria at that time, Step Two is to investigate moving a rate reduction with their current lender or consider options to move to an even more competitive home loan and potentially reducing their repayments further.
Sometimes the best solution isn’t the cheapest home loan available today.
It’s finding the right solution for today, getting things back under control and creating a pathway towards a better option tomorrow.
What Did Our Clients Say?
Following their successful refinance, they shared:
“Kelly guided us through every stage of our refinance application and made what could have been a stressful process feel smooth and straightforward.”
They also praised Kelly’s communication, availability and support throughout the refinance.
Stories like this are exactly why our team loves what we do.
Could Refinancing or Debt Consolidation Help You?
You don’t have to be in financial hardship to review your home loan.
You might simply want a cheaper home loan, lower repayments or a better interest rate.
Or perhaps you’re juggling credit cards, personal loans and other debts and wondering whether consolidating debts into your home loan could improve your monthly cash flow.
And if you have poor credit, defaults or previous arrears, don’t automatically assume refinancing isn’t possible.
Every situation is different and debt consolidation isn’t suitable for everyone, but understanding your options is a great place to start.
Sometimes the right home loan isn’t just about a cheaper rate. It’s about simplifying your finances, improving your cash flow and giving your family room to breathe.
Chat with a WhiteStar Mortgage Broker today.
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Unlike going directly to a bank, we compare multiple lenders and tailor a solution to suit you.
With over 30 years’ experience, we specialise in both straightforward and more complex scenarios — often finding solutions where others can’t.
As mortgage brokers, we’re also bound by Best Interests Duty, meaning we’re legally required to act in your best interests — not the lender’s.
We can review your options (including your credit file) without leaving multiple enquiry marks that may impact your score, so you can explore what’s possible with confidence.
With strong reviews, real client results, and conveyancing support in Victoria, we’re here to guide you from start to finish.
Read our Reviews and Case Studies to know more
Poor credit generally refers to your overall credit history, including missed repayments, defaults or high levels of debt.
Your credit score is a number that reflects this history at a point in time. While your credit score is important, lenders also look at the bigger picture — including your income, expenses and ability to repay.
This means some borrowers may still be eligible for home loan if their credit score is lower. Lenders have different criteria, it about knowing who will help with a bad credit score and also who will help with bad credit like defaults and arrears.
If you’re self-employed and having trouble proving your income, it’s still worth exploring your options with a mortgage broker before applying. Many lenders assess income differently, and some offer alternative income options with more flexible documentation requirements.
Rather than applying directly and risking a decline, it’s best to speak with a broker first. At WhiteStar, we’ll guide you on what paperwork may be accepted by different lenders and help you understand your options before you apply. If you are about to lodge your tax returns, it can be a good idea to wait and speak to a broker before they are lodged.
Self Employed Home Loan Case Study
Not always. Commonly lower dealership rates can be offset by a higher vehicle price or extras built into the deal — meaning you could still end up paying more overall.
A smart approach is to first negotiate the best price for the car without finance attached, then compare finance options separately.
Chat with the team at WhiteStar Finance & Conveyancing before signing anything — we can help you compare the real overall cost, not just the advertised rate.
Nearly 77% of home loans in Australia are arranged through mortgage brokers — because they offer a wider, more tailored range of options.
A broker compares multiple lenders (not just one bank), helping you find the right fit — especially if you have a poor credit score or need bad credit options.
We also follow Best Interests Duty (BID), meaning we must act in your best interests, and we can assess your options without leaving multiple credit enquiries on your file, which can impact your score.
Read some of Our Reviews Here
Dealership finance is arranged directly through the car dealer, usually with a limited panel of lenders.
A car finance broker, like the team at WhiteStar Finance & Conveyancing, works with multiple lenders to compare options and help find a solution suited to your circumstances.
Yes — many people use equity in their home as a deposit, meaning you may not need cash savings.
Rental income can help with repayments, and there may be tax benefits, but it’s important to ensure the strategy suits your situation and risk comfort.
Lenders assess investment income and expenses differently, which can impact borrowing capacity — so working with a broker helps ensure the loan is structured correctly for you.
You’ll still need to service the loan based on your income and commitments.
Yes — depending on your situation, it may be possible to refinance or obtain finance to help clear ATO debt.
This can sometimes improve cash flow, simplify repayments, or help a business move forward with more certainty.
Options may include:
- Refinancing existing loans
- Debt consolidation
- Business or commercial lending
- Asset-backed finance
- Specialist lending solutions
Not all lenders will accept ATO debt or payment arrangements, however some lenders are more flexible than others depending on the strength of the overall application.
The sooner you seek advice, the more options you may have available.
Chat with the team at WhiteStar Finance & Conveyancing to explore your options.
Many Australians use an SMSF to gain more control and transparency over their super, including the ability to invest directly in property as part of a long-term strategy.
However, SMSF property lending is highly regulated. You generally need:
- sufficient super balance (often $200k–$300k+ as a guide)
- the ability to service the loan rent and contributions (your income and contributions still matter)
- the correct SMSF and bare trust structure set up before purchase
Not everyone will qualify, and lending options are more limited than standard home loans.
It’s important to speak with a broker early to confirm eligibility before spending money on advice or setup, as getting the structure or timing wrong can be costly.
Read our Blog
SMSF loans are structured differently to standard home loans. The property is typically held in a separate (bare) trust, and lending options are more limited.
Buying a property inside an SMSF can be a smart strategy — but only when the structure, lending, compliance and long-term planning are done correctly.
If you’d like help checking borrowing capacity the team at WhiteStar Finance & Conveyancing can guide you on the process and finance criteria & eligibility, however we cannot offer legal and financial advice as to whether a SMSF or Purchasing in your SMSF is suitable for your individual circumstances.
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