Short answer: there isn't one number. No Australian lender publishes a minimum credit score for a home loan, and the same score can get a yes from one bank and a no from another. What matters more is what's sitting on the file behind the score: missed payments, defaults, how many times you've applied for credit lately, and whether any of it lines up with what you've told the lender.

We get asked about this a lot, usually by someone who has just checked their score in an app and is either relieved or worried. Both reactions are often a bit off, so here's how it actually works.

Who keeps your credit file

Australia has three main credit reporting bodies: Equifax, Experian and illion. Each holds its own file on you and works out its own score, on its own scale. Equifax scores run to 1,200; Experian and illion score out of 1,000. That's why a free app can show you one number and a lender can be looking at something quite different. Most lenders use Equifax, some use more than one.

You can get a free copy of your report from each of them. It's worth doing before you apply, not to see the score so much as to check the detail is right.

What lenders actually look at

The score is a quick filter. A credit assessor reading a home loan application looks at the file itself, and these are the parts that carry the most weight:

  • Repayment history. Since comprehensive credit reporting came in, your file shows whether each month's repayment on a card, car loan or mortgage was on time. A run of late payments in the last year or two gets noticed even if the account is now up to date.
  • Defaults. An overdue debt that's been formally listed, often a phone bill or utility account people forgot about after moving. Paid or not, it stays on the file for five years, though a paid default is viewed more kindly.
  • Recent credit enquiries. Each application you make shows up. Several in a short space of time looks like someone shopping for money they might not be getting. This is the one we see trip people up most.
  • Existing limits. Lenders assess credit cards at the full limit, not the balance. A card you never use still costs you borrowing power. More on that in how much can I borrow.
  • Court judgments, insolvency and hardship arrangements. These are serious and need explaining, but they don't always end the conversation. A hardship arrangement on its own is treated differently from a missed payment.

Buy now, pay later and phone plans

Buy now, pay later accounts are now regulated as credit, so applications and repayment history for them can appear on your file. Separately, lenders read your bank statements and will see regular Afterpay or Zip payments there regardless. They aren't a problem in themselves. Lots of them, or missed ones, are.

Phone plans on a contract and post-paid utility accounts are a common source of small defaults. If you've moved house in the last few years, check none of your old accounts were left with a balance.

Does checking your own score hurt it?

No. Checking your own credit report or score doesn't count as an enquiry and doesn't affect it. What shows up is an application for credit, including a home loan application. Many lenders now use a 'quote' enquiry for early pricing that doesn't show to other lenders the same way, but a full application does.

This is one of the practical reasons to use a broker rather than applying at three banks to see who says yes. We work out where you're likely to be approved before anything is lodged, so you end up with one enquiry on your file rather than several.

What if your score is low?

It depends what's behind it. A thin file, say a younger buyer with one credit card and nothing else, scores lower but usually isn't a problem for a home loan if the income and savings are solid. A file with recent defaults or a string of late payments is a different story.

  • Minor and explainable: a single late payment, an old paid default, a handful of enquiries. Many mainstream lenders will still look at it, especially with a clear explanation.
  • Recent or repeated problems: mainstream lenders may say no. Specialist lenders exist for this, usually at a higher rate. The usual plan is to take that loan, keep a clean record for a year or two, then refinance back to a mainstream lender.
  • Something wrong on the file: fix it first. Incorrect listings can be disputed with the credit reporting body and the company that listed them, and that's free to do.

How to tidy your file before applying

Give yourself three to six months if you can. Most of this is unglamorous but it works:

  • Get your report from all three bureaus and read it line by line.
  • Dispute anything that isn't yours or isn't accurate.
  • Pay every bill on time, including small ones. Set up direct debits.
  • Stop applying for credit. No new cards, no car finance, no store accounts.
  • Close cards you don't use, or ask for the limit to be reduced.
  • Don't pay off a default and assume it disappears. It will show as paid, which helps, but it stays for the full period.

If you're a first home buyer saving a deposit, the same habits that help your credit file also help the savings history lenders want to see. It's worth starting both early.

Talk to us before you apply

If you're not sure how your file will read to a lender, ask us before you lodge anything. We'll tell you plainly where you stand and which lenders are likely to be a fit, and we won't put an application in anywhere it's going to be declined. Get in touch or call 1300 001 755. We're based in Forestville and help buyers across the Northern Beaches and North Shore.

Frequently asked questions

What credit score do I need for a home loan in Australia?

There's no published minimum. Lenders look at the detail on your credit file, such as repayment history, defaults and recent enquiries, alongside your income, expenses and deposit. A thin file with a modest score can be fine; a high score doesn't override a recent default.

Does checking my credit score lower it?

No. Checking your own report or score doesn't affect it. Applications for credit are what show up as enquiries.

How long does a default stay on my credit file?

Five years from the date it was listed, even after it's paid. Paying it is still worth doing, because lenders treat a paid default more favourably.

Can I get a home loan with bad credit?

Sometimes. It depends how recent and serious the problems are. Specialist lenders consider applications mainstream banks decline, usually at a higher rate, and many borrowers refinance once their record has been clean for a while.

Do buy now, pay later accounts affect my home loan?

They can appear on your credit file and they show on your bank statements. A few well-managed ones are rarely a problem; lots of them or missed payments can be.

Will using a mortgage broker affect my credit score?

A broker can check where you're likely to be approved before lodging, which usually means fewer enquiries on your file than applying at several banks yourself.

General information only. It does not take your objectives, financial situation or needs into account, and it is not credit or financial advice. Lender policy, rates and eligibility change regularly and vary between lenders — talk to us about your own circumstances before acting on anything here.