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

Australia has three main credit reporting bodies: Equifax, Experian, and illion. Each calculates a score using its own model, so your number can differ between bureaus. Lenders typically pull from one or two of them. Equifax scores range from 0 to 1,200. As a rough guide: • Excellent: 853 to 1,200 • Very good: 735 to 852 • Good: 661 to 734 • Average: 460 to 660 • Below average: 0 to 459 Experian uses 0 to 1,000 and illion uses 0 to 1,000 with similar bands. You can check your score for free through each bureau's website, and through services like Credit Savvy, Finder, or your banking app. Under Comprehensive Credit Reporting (CCR), your file shows not just defaults but also your repayment history on credit products for the last 24 months. Missing a credit card minimum payment now leaves a footprint, even if you pay it the next day.

There is no published minimum score for any major Australian lender, because scores are only one input into a holistic assessment. That said, in practice: • Major banks (CBA, Westpac, NAB, ANZ): cleanest approvals usually have Equifax scores above 650 to 700 • Second-tier banks: similar appetite, sometimes a touch more flexible • Customer-owned banks: often consider files in the 600 to 700 range with strong income • Specialist non-bank lenders (Pepper, Liberty, Resimac, Bluestone): can work with scores from around 500, including paid or unpaid defaults, at premium rates A low score does not automatically disqualify you. A high score does not automatically approve you. Lenders also assess income stability, expenses, deposit, asset position, and the property itself.

The most common score-killers we see in client files: • Late or missed payments on credit cards, personal loans, BNPL (Afterpay, Zip), or telco bills • Multiple credit applications in a short period (each enquiry registers, even if declined) • Defaults (a debt 60+ days overdue, reported by the credit provider) • Court judgments, debt agreements, or bankruptcy • High credit card limits relative to income, even if balances are low • Closed or chargeback dishonours on direct debits Applying for several home loans at different banks in the same month is particularly damaging because each application creates an enquiry. Using a broker means one well-targeted lodgement instead of multiple speculative ones.

If you have 3 to 12 months before you want to buy, these moves typically help: • Pay every bill (including phone, utilities, BNPL) on time, every time • Reduce credit card limits to what you actually use; lenders assess the full limit as a liability • Pay down or close personal loans and BNPL accounts • Avoid applying for new credit • Check your credit file for errors and dispute any incorrect listings (Equifax, Experian, illion all have free dispute processes) • Pay off any defaults; while paid defaults remain on file for five years, they look better than unpaid ones For borrowers with serious credit history issues (recent defaults, Part IX agreements, discharged bankruptcy), specialist lenders can often help inside two years, but the rate premium is meaningful and refinancing back to a major lender once history is rebuilt is the usual exit strategy.

This is general information only, not personal credit advice. Your actual options depend on your full financial picture, including your income, deposit, credit profile, and the specific loan structure you need. Speak with a licensed broker for advice tailored to your situation.