If your parents have bad credit and home loans, there’s a good chance they’re trapped on a punishing interest rate. One default on their credit file could be costing them hundreds — even thousands — of dollars every single year in extra repayments. And here’s what most families don’t realise: that default probably shouldn’t even be there.

How One Default Inflates a Home Loan by Thousands

When a default sits on a credit file, no competitive lender will offer a refinance. Your parents are stuck with whatever rate they’re on — or worse, pushed onto a high-interest product designed for “impaired credit” borrowers. The difference between a standard variable rate and a bad-credit rate can easily be 2-3% per annum. On a $400,000 mortgage, that’s $8,000 to $12,000 a year in extra interest. Every year. For up to five years until the default drops off.

MyCRA Lawyers reviews thousands of defaults every year. In 91.6% of cases, the creditor failed to follow the legally required process under the Privacy Act 1988. They didn’t send the right notices. They didn’t comply with mandatory timeframes. They didn’t follow the rules — but your parents are the ones paying for it every month.

The fix can be surprisingly straightforward. MyCRA Lawyers reviews the default, identifies the compliance failure, and issues a legal demand. The default gets removed — typically within 7 to 30 days. Then your parents can refinance to a competitive rate. Lower repayments. Less stress. More money staying in the family.

One default removal could save your parents thousands of dollars a year and years of financial stress. If they’ve got a default on their credit file, there’s a 9 in 10 chance it can be removed.