Break Free Home Loans are a leading Melbourne mortgage broker, with over 20 years of industry experience. We provide lending solutions and advice tailored to your needs. We work closely with clients as trusted advisors and are accessible to clients when needed.
Our brokers work hard at understanding our client’s unique circumstances and helping them overcome common home loan challenges. Whether you’re a first home buyer or an experienced investor, we’ll help you find the best home loan for your situation. Whether you’re self-employed and have trouble proving your income or you’re a contractor or casual worker, we offer solutions for all types of clients’ income sources.
If you are a single mother, you may be eligible for a variety of loans. There are emergency loans for unemployed single mothers, loans for single parent pensioners, no or low interest loans, short-term loans and bank loans. If you have bad credit or you’re a Centrelink recipient, you are still eligible for finance. You can also look into other alternative financing options from non-bank Aussie lenders, private lenders and peer-to-peer loans. Talk to our brokers today. We can help you find a loan product with the best rate and repayment option that meets your needs.
What Are Emergency Loans For Unemployed Single Mothers
Your options may appear limited as a single mother. It can be tempting to apply for a short-term or payday loan when you are experiencing financial hardship or have bad credit history. But loans like these should be a last resort since they come with exorbitant prices. The immediacy of these types of financing will often be offset by their costs and damage your credit score further. It’s always important to consider all your options before making a decision. Making a hasty decision will affect your ability to receive credit in the future. There are emergency loans for unemployed single mothers that will allow you to borrow at a fair and affordable rate if you take the time to look into your options.
How Much You Can Borrow
Usually borrowing limits for small emergency loans for unemployed single mothers in Australia finance, especially those who are already receiving Centrelink pension payments, are capped at $5,000. But this varies between lenders and qualified brokers can help you personally negotiate. Generally, emergency loans of $2,000 or less do not incur an interest fee. Short-term loans will allow you to borrow up to $2,000, but there are also medium-term loans of $5,000 and $10,000.
Single Fathers
If you are a single father, there are also alternative loan options you might want to consider that include no and low interest loans schemes.
How To Get Emergency Loan For Unemployed Single Mother
Once you’ve found the right loan for your needs, you can submit an application to the lender. Some lenders offer pre-approval so you can check your eligibility. The following are some conditions you need to meet so lenders can approve your loan:
Requirements
These are the general requirements lenders consider when assessing borrowers: They will require you to be over 18 years old, an Australian citizen or permanent resident, and earning a regular income.
Documents
You will be asked to provide documents to verify your personal details. These are some of the documentation you need to prove your income:
- 90 days of bank statements
- Employment details
- Details of your assets
- Information on your other debts
Benefits Of Emergency Loans For Unemployed Single Mothers In Melbourne
The following are some benefits when it comes to securing financial assistance tailored for single mothers and unemployment:
Lowest Rates
There are small to no interest loans you can apply for. No interest loans are offered by over 170 local community organisations across Australia. You may be able to borrow up to $1,500 with a loan term of 12 to 18 months. These loans feature no fees, charges or interest rates. They can make it much easier for you to regain financial control. You will only have to repay the amount you borrowed.
Quick Approval
Specialised lenders, private lenders and community lenders offer a less rigorous loan approval process than traditional lenders like banks. It can mean a major difference when you are looking to secure finance immediately.
No Credit Check
The lender eligibility criteria is generally less stringent than traditional lenders. While you will have to prove your ability to repay the loan, lenders will consider other financial factors apart from your credit score. They will look at your recent bank statements, expenses and liabilities such as other loans or credit card bills.
No Collateral
There are unsecured finance options available for emergency loans. You don’t have to put up an asset as collateral. On secured loans, this loan security, in the event of nonpayment, would be sold by the lender to reclaim their losses. Although, beware lenders may still take legal action against you if you default.
Things That Will Help You Get Better Credit Conditions
If you are a single mother and you’re unemployed, or do not meet traditional lenders’ income requirements, emergency loans may be more lenient to borrowers. The following are some considerations to get better credit conditions when you apply for your emergency loan:
Disability Pension Payments
You can still get a loan if you’re getting disability support pension payments. Though there are lenders who may need you to prove you have income outside of your age pension payments. The maximum borrowing limit for most pensioners is $2,000. However, you can also apply for a no interest loan. In this case you’ll have to provide your pensioner concession card. You must also have an annual income of less than $45,000 after tax.
Parenting Pension Payments
Carer Allowance payments or Parenting Pension payments will also not affect your ability to obtain a loan. You only need to fall under the maximum income requirements, prove you have other sources of income apart from the benefits you receive, and meet other basic lending criteria. Your eligibility will depend on whether you show you can repay the loan. This will affect how much the lenders will charge in interest (if it is a low interest option), the monthly repayments, and the borrowing limit they decide.
Good Credit History
You need to have documented credit history. Lenders will usually look at whether you have any outstanding debts, if you can manage credit responsibly and examine if you’ve been fiscally responsible too. It’s always a good idea to have a closer look at your credit report and inspect all your credit accounts. If you spot any errors, you should dispute them with your credit rating agency to improve your credit profile.
Centrelink Income
How much you receive from Centrelink will affect your eligibility. Most lenders require you to receive less than 50% of your income from Centrelink. They will look at your annual income to determine if you qualify for their loan.
Types Of Emergency Loans For Unemployed Single Mothers
Lenders will look into your financial situation, credit history and your current income and assets. You should always compare your finance options to secure the best deal possible. The following are some popular alternatives when it comes to emergency loans:
No Collateral Loans
No collateral loans are also known as unsecured loans or unsecured finance. These personal loans are available for parents, single mothers and any applicants applying on an individual basis. This option allows you to obtain finance without putting up an asset as loan security. However, as this presents more risk to lenders, borrowers will usually have to pay a higher interest rate and be limited to lower borrowing amounts.
Secured Loans
Secured loans are a type of financing borrowers can qualify for by using a collateral. This is usually a property or other types of equity, or valuables such as a vehicle and other personal assets. They usually offer more flexibility in your repayment terms and interest rates.
Short-Term Payday Loans
We do not generally recommend these. Short-term payday loans are highly expensive with interest fees being capped at 48% of the total loan amount.
Long-Term Loans
A long term personal loan will offer terms between 5 to 7 years for you to repay the loan. While you can spread the cost of the loan over a longer period of time, it is important to consider you’ll be making interest payments over the life of the loan. Consider whether the total cost of the loan fits into your budget.
Other
Other alternatives include crowdfunding and peer-to-peer lending. Peer-to-peer loans are from investors without a financial institution acting as an intermediary. These can be friends, family or private investors. Another similar approach is to take on a loan with one of these people acting as a guarantor. Remember you should always be confident you can repay the loan. Otherwise, you will risk your relationship with the loan provider or guarantor with these loans. Crowdfunding is another option you can explore. However, be sure to look at any donation fees since they will affect your fundraising goals.
Got Questions? Ask An Expert!
If you’ve got any questions in regards to emergency loans, speak to our expert brokers. We can help you on your loan application and give you the best chance at approval with your chosen lender. We’ll help you compare costs, do all the legwork in approaching multiple lenders at once and make sure you’re eligible for your loan. To find the right finance option to suit your needs, contact Break Free Home Loans.
Frequently Asked Questions
Break Free Home Loans is committed to helping you secure fair, affordable finance. We work closely with our clients to understand their individual circumstances and find the right lender for them. The following are some of our most frequently asked questions:
Can I Get An Emergency Loan While Unemployed As A Single Parent?
Yes, you can. Single parents are eligible for no interest loans, low interest loans as well as secured and unsecured loans. You can choose from a variety of personal loans from non-bank lenders and community lenders who are much more lenient in their borrowing criteria. So if you’ve got low income, or you’re unemployed, or have had a bad credit history, you can still qualify for financial assistance.
What Are The Benefits Of Emergency Loans For Unemployed Single Mothers In Melbourne?
Emergency loans for unemployed single mothers in Melbourne are generally faster and easier to approve than other traditional loans. They offer lower interest rates, and more flexibility when you’re undergoing financial difficulties. They don’t require a hard credit check or a collateral (in the case of unsecured finance) to qualify. They are a much more viable option for those who need immediate financing but cannot meet the eligibility criteria of traditional lenders.
How To Get Emergency Loans For Unemployed Single Mothers?
When you are unemployed as a single mother, you can still qualify for finance. If you satisfy the following basic requirements, you’ll usually qualify for your loan regardless of not meeting more traditional lending criteria. You need to:
- Provide a Health Care Card, a Pensioner Concession Card, or an annual income less than $45,000 after tax.
- Show you can repay the loan.
- Live at your current address for more than three months.
Contact our team
We love to hear from each and every one of you. Please feel free to reach out to us today!