Bad Credit Home Loan Australia 2026 — Options When You Have a Blemished Credit History

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Bad credit home loans are available in Australia through specialist non-conforming lenders. Rate premiums of 1–5% apply. After 2–3 years of improved credit history, refinancing to mainstream rates is possible.

Frequently Asked Questions

Can I get a home loan with a default on my record?

Yes — with a specialist non-conforming lender. Major banks will generally decline. Paid defaults are treated better than unpaid ones. Small telco/utility defaults ($500 or less, paid) are increasingly accepted by some mainstream lenders.

Does bad credit affect how much deposit I need?

Yes. Most non-conforming lenders require 20–30% deposit for borrowers with significant credit events. Some will lend to 85% LVR for minor adverse credit.

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