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Leigh S.
Leigh S.
Frankston, VIC

Had a few credit issues… is there a minimum credit score you can have and still qualify for a home loan?

5 years ago

Hi Leigh,

Your credit score is one component, it's possible to still get a loan depending on the specifics of your situation.

There are lenders out there who specialise in home loans with credit issues.

Happy to discuss this further if you have some time this week feel free to let me know your contact details and we can go from there.



Hi Leigh

Normally we can find a solution for most people, even if it's at a specialist lender. If you'd like to discuss further, feel free to visit mortgagedirect.com.au and start a chat, and I can discuss further with you.


Hi Leigh,

It is not so much about the credit score but the issues that you have on your credit file.

There are a number of non conforming lenders that will lend money to people with credit issues, but you will pay more because of it. These lenders offer a rate for risk model which essentially means that they increase the rate the more risky you are because of things like credit issues. Depending on your credit issues your interest rate could be 11% or 12%.
They may also have higher deposit requirements or limits on the loan to value ratio you can borrow at.

It is not all bad news. These lenders often understand they are just a short term measure, once your credit history improves a good broker should be recommending you move over to a normal bank with a much better interest rate.

Feel free to get in touch if you want to discuss your specific situation, with credit issues each loan and rate is very different so the above is just general information.


Hi Leigh,
As Dean has said, the score doesn't have to stop you getting a loan. It simply ranks your credit behaviour for lenders to assess if they will lend to you and at what rate.
I'm in Frankston and Mornington on Tuesday if you would like to meet?

5 years ago

Credit score was 513. I have operated my own business for many years which didn’t end well and have been working in the same job for just over 18 months. About to inherit about 140,000 and would like to buy a new home. Income is 78,000 … could this be possible? ta


Hi Leigh,
I would suggest that it would be. Borrowing capacity on $78,000 with no current debts is about $480,000 give or take. So a purchase around $550,000 could be possible

Thanks Scott, it gives me something to work from. I see your close by so I will start looking around and then give you a call.

I don't want to pressure you but it is definitely worth going through the exercise of getting a 'pre-approval' so you can look or even offer with confidence.
I'm happy to be that person. But I would highly recommend you sitting with a broker whoever you choose

Hi Leigh

Adding to what everyone has said, there are providers that will lend to a person discharged from bankruptcy, so it should be possible.

It just depends on which lender you approach. Some lenders are more interested in your ability to service your loan than your credit score.

One way is to approach a broker, who can email your scenario to a few lenders they work with, and you’ll usually get a response as to whether they’re happy to take on the loan.


Hi Leigh,
There are more answers than just higher interest home loans...

If you know what is on your credit file, you are in the driver's seat to improve your situation.
Do you know what is squashing your credit score?
Do you have defaults or Judgments?
Do you have too many enquiries for credit?

You have the right to challenge the validity of any element on your credit file - and I suggest you do.
If you get stuck, can't understand your credit file, can't find the correct department within the defaulting creditor's organisation, simply don't have time or anything else, let me know and I'll have a look at your credit files for you at no charge or obligation.
I will tell you what your options are and point you in the right direction, what to look out for, what to avoid and if you want to do it yourself, where to start. if you want someone to do it for you, I can point you to the only specialist credit Reporting Legislation law Firm in Australia...

As everyone above has indicated, if you have BAD credit, it could cost you but it is still possible. if you get cleaned up first, you could go from the 12% suggestion of Nathan, back down to 4% or 5% area with Nathan or your preferred broker. (12% back down to 5% saves you a full 7% per year, that's $7,000 in interest every year, for mevery $100,000 you borrow...) Massive savings potential.
Look me up in my profile if you want a quick chat.

I hope this helps


Hi Leigh,

I feel quite confident that you could get a home loan for yourself. There are some lenders who do not credit score and there are also others that will look at people with defaults etc.

There are also specialists the can "clean up" your credit file and remove any problem entries depending on the circumstances.

I specialise in lending in difficult situations so if you wanted to have a chat at some stage, I would be happy to do so.

I haven’t put my contact details in the email because the will be redacted so please search for me through the "Industry experts" tab and click on my business name under "Name of Business" and all my contact details are there. I would be happy to assist you. And I'm not too far away from you!


Michael Budge
Bayside Finance Group

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