Compare the Market’s Home Loans Heaven: 7 borrower types who aren’t eligible

How Home Loans Heaven works

Compare the Market has launched an online home loan comparison and application service called Home Loans Heaven.

Borrowers can:

• Compare lenders and apply completely online.
• Get matched to relevant lenders based on their eligibility and loan details.
• Get expert help if needed.
• Track loan applications, their credit score and other details via a dashboard.

Who is not eligible for a Home Loans Heaven loan?

Borrowers who don't fit a lender's vision of an ideal borrower won't be able to apply.

You can only get a loan via Compare the Market's service if you:

• Are buying or refinancing a property in a capital city or major regional centre. The property can be newly built, but needs to be fully finished.
• Are buying an apartment that's bigger than 50 square metres.
• Have at least a 5% deposit.
• Are borrowing alone or as a couple (married or de facto, living together).
• Are employed full-time with a PAYG salary (or if a couple, at least one of you must be).
• Have a good credit history.

These requirements cover a lot of people who are buying or looking to refinance an existing loan.

Borrowers who won't qualify

But you can't use Home Loans Heaven if you:

1. Are a self-employed borrower or have bad credit history.
2. Are building a new property and it's not finished yet (no construction loans).
3. Need the help of a guarantor to support your loan application.
4. Are borrowing with a friend, family member or co-borrower who is not your partner.
5. Are buying a property in a regional area that's not a major urban centre.
6. Are buying a small apartment under 50 square metres.
7. Are planning to split your rate (you can only get a completely fixed or completely variable home loan rate).

What kind of borrower is most suited to Compare the Market's service?

Home Loans Heaven is designed for the "typical" Australian borrower or new buyer. That is, an individual or couple buying (or refinancing) a home in an urban area, on full-time PAYG salaries, who don't need guarantor support, don't have bad credit and are not buying a tiny studio apartment.

Refinancers, who already have home loans and are often seen as the ideal borrower, should have an easier time.

First home buyers who are building their homes, are self-employed, buying in small country towns or who want to buy with a sibling or friend won't be able to take advantage of Home Loans Heaven.

This includes more Australian borrowers than you might think. Finder research found that almost 1 in 10 first home buyers rely on their parents to guarantee their loan application.

Alternatives to Home Loans Heaven

If you aren't eligible for Compare the Market's service you have other options:

1. Do it yourself. Compare home loans for yourself and apply directly with a lender.
2. Talk to a broker. Mortgage brokers are very popular, especially with first home buyers or borrowers in unique circumstances. They can also compare a range of lenders and have a good sense of which lenders are likely to accept your application.
3. Have you got a guarantor? If you have a guarantor, you might actually be in a stronger position to get a home loan approved. You could talk to your bank or find a new lender.

To make sure you get accurate and helpful information, this guide has been edited by Jason Loewenthal as part of our fact-checking process.

Written by

Richard Whitten

Editor

Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio

Richard's expertise

Richard has written 529 Finder guides across topics including:

• Home loans
• Property
• Personal finance
• Money-saving tips