What Credit Score Do I Need for a Home Loan in Australia? (2026)
There is no single credit score that guarantees a home loan in Australia — but lenders do use score thresholds as part of their assessment. Here is what scores mean and what you generally need for different types of lenders.
Australian Credit Score Ranges
Credit scores in Australia are calculated by credit reporting bureaus (CRBs). The most widely used for home loans is Equifax (formerly Veda). Scores run from 0 to 1,200.
| Equifax score range | Rating |
|---|---|
| 1,000–1,200 | Excellent |
| 833–999 | Very good |
| 726–832 | Good |
| 622–725 | Average |
| 510–621 | Below average |
| 0–509 | Low |
Other bureaus (Experian, illion) use different scales — ensure you know which bureau’s score you are looking at.
What Score Do I Need?
There is no universal minimum — every lender sets their own policy. General indicative thresholds:
| Lender type | Indicative minimum credit score | Notes |
|---|---|---|
| Big Four banks (CommBank, ANZ, Westpac, NAB) | 700+ (Equifax) | Stricter overall criteria; may decline borderline cases rather than pricing risk |
| Mid-tier banks (ING, Macquarie, Bendigo, BOQ) | 650–700+ | Policies vary; some more flexible than Big Four |
| Non-bank lenders | 600–650+ | More risk-based; may still decline below ~600 |
| Specialist/non-conforming lenders | No minimum score, but assess individual circumstances | Higher rates; designed for impaired credit; adverse listings may be accepted |
These are indicative only — actual policies differ by lender and individual circumstances.
Important: A credit score is not the only assessment factor. A score of 750 does not guarantee approval — if other criteria (income, deposit, serviceability) are not met, the application may still be declined.
What Affects Your Credit Score?
| Factor | Effect |
|---|---|
| Payment history (on-time payments) | Strongly positive — biggest single factor under CCR |
| Credit defaults | Strongly negative — single biggest red flag |
| Number of recent credit applications | Negative — each hard enquiry reduces score temporarily |
| Credit account utilisation (cards) | High utilisation is negative |
| Age of credit history | Longer positive history = better |
| Types of credit | Mix of credit types can be positive |
| Court judgements or bankruptcy | Severely negative — remain for 5–7 years |
Defaults — The Most Significant Negative
A credit default occurs when a debt ($150+) is more than 60 days overdue and the creditor reports it to a credit bureau. Common sources: unpaid phone bills, utility bills, personal loans, credit cards.
Impact on home loan applications:
- Most major bank automatic systems will decline applications with any default
- Some non-bank lenders will consider applications with older (3–5 year) or smaller defaults, particularly if the default has been paid
- Specialist/non-conforming lenders may accept recent defaults — at significantly higher rates
If you have a default, it remains on your file for 5 years from the date of listing.
What Lenders See Beyond Your Score
Lenders doing a full credit assessment (not just score-based screening) look at your full credit file, which includes:
- Every credit enquiry for the past 5 years
- All listed defaults, court judgements, bankruptcies
- Current credit accounts (limits and outstanding balances)
- Repayment history on current accounts (under CCR)
→ See Credit File vs Credit Score — What’s the Difference?
If Your Score Is Below Lender Thresholds
Options to consider:
- Wait and rebuild: Most negative listings drop off after 5 years. Regular on-time payments on existing accounts improve your score over time.
- Larger deposit: A lower LVR (more equity) can partially offset credit risk for some lenders.
- Non-bank or specialist lender: May offer approval with lower scores at higher rates.
- Mortgage broker: A broker knows which lenders are most likely to approve your specific credit profile — preventing multiple declined applications (which each damage your score further).
- Address paid defaults: If defaults are listed as unpaid and have been paid, ensure the bureau record is updated.
Frequently Asked Questions
Do all lenders use the same bureau?
No — some lenders check Equifax only, some check illion, some check all three. Your score may differ between bureaus.
Can I still get a home loan with a credit default?
It depends on: age of default (recent vs old), amount of default, whether it is paid or unpaid, and the lender. Major banks typically decline; specialist lenders may accept with higher rates.
How quickly does my score improve after paying a default?
Paying the default removes the “unpaid” status on your file — but the listing itself remains for 5 years from the date of listing (not the date of payment). Your score will improve over time as the listing ages.
Related Guides
- How Your Credit Score Affects Your Mortgage Rate
- How to Check Your Credit Score in Australia
- How to Improve Your Credit Score Before Applying
- Credit File vs Credit Score — What’s the Difference?
- Credit and Home Loans Hub
This article provides general information about credit score requirements for Australian home loans. Lender policies change regularly and vary significantly by lender. For advice on your specific credit situation, speak with a licensed mortgage broker. Find one through MoneySmart.