What Credit Score Do You Need for a Home Loan in Australia?

Your credit score is one of several factors lenders consider when assessing your home loan application. While there's no single "minimum" score, a higher score gives you access to better rates and more lender options.

Credit Score Ranges in Australia

Australia uses two main credit reporting agencies: Equifax and illion. Scores range from 0-1200 (Equifax) or 0-1000 (illion).

Rating	Equifax Score	illion Score	Home Loan Impact
Excellent	833-1200	800-1000	Best rates, any lender
Very Good	726-832	700-799	Most lenders, competitive rates
Good	622-725	500-699	Most lenders, standard rates
Average	510-621	300-499	Limited lenders, higher rates
Below Average	0-509	0-299	Specialist lenders only

What Score Do Most Lenders Want?

Most major banks prefer a score of 600+ (Equifax). Some will go lower if other factors are strong (high deposit, stable income, clean recent history).

Specialist lenders work with scores as low as 400, but at higher interest rates.

What Affects Your Credit Score?

Positive factors: On-time payments, long credit history, low credit utilisation, few enquiries

Negative factors: Missed payments, defaults, court judgements, bankruptcy, too many credit applications, high credit card limits

How to Improve Your Score Before Applying

1. Pay all bills on time for 6+ months
2. Reduce credit card limits (cancel unused cards)
3. Don't apply for new credit in the 6 months before your home loan application
4. Check your credit report for errors and dispute any
5. Pay off small debts and defaults if possible

Can You Get a Home Loan with Bad Credit?

Yes, through specialist lenders. Options include:

• Non-conforming lenders (higher rates, lower LVR)
• Debt consolidation refinancing
• Waiting 12-24 months for score to improve
• Using a larger deposit to offset credit risk

A mortgage broker can find lenders that work with your specific credit situation.

FAQs

Does checking my own credit score affect it?

No. Self-checks are "soft enquiries" and don't impact your score.

How long do defaults stay on my credit report?

Paid defaults: 5 years. Unpaid defaults: 7 years. Bankruptcy: 5 years from discharge.

Will a home loan application affect my score?

Yes — each application creates a "hard enquiry." Multiple applications in a short period can lower your score.

Can I get a home loan with a default on my record?

Possible through specialist lenders, especially if the default is paid and over 12 months old.

How quickly can I improve my credit score?

Small improvements in 3-6 months. Significant improvement in 12-24 months with consistent good behaviour.

Check your borrowing power or book a free strategy call to discuss your options.

Last updated: April 2026