Minimum Credit Score for Home Loans in Australia

Minimum Credit Score for Home Loans in Australia | 2025 Guide

Minimum Credit Score for Home Loans in Australia

Thinking about buying a home in Australia? One of the most important factors lenders will consider is your credit score. But what exactly is the minimum credit score required to secure a mortgage in 2025? Let’s break it down.

Australian man checking credit score on a laptop

What Is a Credit Score and Why Does It Matter?

Your credit score is a number that reflects your creditworthiness. It tells lenders how likely you are to repay borrowed money. In Australia, credit scores typically range from 0 to 1,200 (Experian/Equifax) or 0 to 1,000 (illion).

Credit Score Ranges (Experian Example)

  • 800 – 1,200: Excellent
  • 700 – 799: Very Good
  • 625 – 699: Good
  • 550 – 624: Fair
  • 0 – 549: Poor

What Is the Minimum Credit Score for a Home Loan in 2025?

While there is no universal "cut-off" score, most Australian lenders require a credit score of at least 620 to 660 to consider you for a standard home loan. The higher your score, the better your chances—and the lower your interest rates.

Typical Lender Requirements

Lender Minimum Credit Score (Approx.) Loan Type
Commonwealth Bank 650+ Standard Variable Rate
NAB 640+ Fixed or Variable
ANZ 660+ First Home Buyers
Online Lenders (e.g. Athena, Tic:Toc) 620+ Low Rate Online Home Loans

How to Improve Your Credit Score Before Applying

  1. Pay bills and loans on time—every time.
  2. Reduce your credit card balance below 30% of your limit.
  3. Avoid multiple credit applications in a short time.
  4. Check your credit report for errors (free once a year).
  5. Close unused accounts responsibly.

Can You Still Get a Home Loan With Bad Credit?

Yes, but your options may be limited. Some lenders specialize in non-conforming or bad credit home loans. However, expect higher interest rates, fees, and stricter conditions.

Tips for First-Time Buyers in 2025

  • Apply for a credit pre-approval before house hunting.
  • Consider government schemes like the First Home Guarantee.
  • Save at least 20% deposit to avoid Lender’s Mortgage Insurance (LMI).

Conclusion

Your credit score can open or close doors in the home loan process. Start working on it early, understand where you stand, and aim for a score above 660 for the best outcomes. If you’re not quite there yet, don’t panic—there are still paths to home ownership with the right plan.

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Disclaimer: This article is for general informational purposes only and is not financial advice. Always consult a qualified financial advisor before making loan decisions.

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