Minimum Credit Score for Home Loans in Australia

Minimum Credit Score for Home Loans in Australia

Applying for a home loan in Australia? Your credit score could make or break your chances. In 2025, lenders are paying even more attention to your financial profile. Let’s explore what credit score you need — and how to boost it.

What Is a Credit Score?

In Australia, credit scores range from 0 to 1,200 depending on the credit reporting agency (Equifax, Experian, illion). A higher score means lower risk for lenders.

Minimum Credit Score for Different Lenders

Lender Type Minimum Score Notes
Major Banks (e.g., CBA, NAB) 650+ Prefer stable income & history
Online Lenders 500–600 More flexible but higher interest
Non-Conforming Lenders Below 500 For poor credit, expect higher fees

How to Improve Your Credit Before Applying

  • Pay down existing debts
  • Make bill payments on time
  • Don’t apply for new credit months before applying for the mortgage
  • Dispute any errors in your credit report

Other Factors That Affect Approval

  • Income stability and employment history
  • Deposit amount (LVR below 80% is ideal)
  • Spending habits & monthly commitments

Tip: Use a mortgage broker to help find lenders that match your credit profile.

Disclaimer: This post provides general information only. Please speak to a qualified mortgage adviser before making lending decisions.

Couple applying for home loan in Australia 

 

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