Judgment Home Loan

Can You Get A Mortgage With A Judgment On Your Credit File?

Yes, it’s possible to get approved for a judgment mortgage with specialist lenders. You’ll likely need to show:

• Evidence of stable employment
• A clear plan for managing current debts
• That the judgment has been paid or is being resolved

Judgments can be confusing, especially when they affect your ability to borrow. Below, we break down the different types of judgments, which ones appear on your credit report, and what you can do to get them removed, or still get a home loan despite them.

What Do Lenders Know About My Court Judgment?

Credit providers will see the court judgment on your credit file.

• It gives them an indication that you have been in financial trouble, that you have been unable to resolve.
• However, they don’t know the full details of precisely what happened and whether you were at fault or not.

From a bank’s point of view, a court judgment:

• Shows that the person was unable to come to a suitable agreement with the creditor without resorting to legal action.
• Shows that there has been legal action which raises the possibility that there may be other legal action going on.
• Is a very high risk and will affect your credit score.

They only know that the court ordered you to pay the other party and that you did not make this payment on time or at all.

They will ask for an explanation behind the judgment and will consider your reason when assessing your home loan application.

How Long Will Judgments Stay On My Credit Report?

Judgments are considered public records and are put on your credit file when you receive a magistrate’s order to pay a debt.

They remain on your credit file for five years from the date of judgment.

Paid Or Unpaid Judgments?

Judgments are worse than defaults because they are court orders.

These are directives to pay a debt for which you have breached the terms. They stay on your credit file for five years, whether or not the default has been paid.

It is still better if you pay out the debt so that the judgment can appear as “paid” on your credit file rather than remaining as “unpaid”.

What Judgments Cannot Be Listed On Your Credit Report?

Previously, even minor civil disputes, like a disagreement with a supplier, could lead to a court action being recorded on your credit report, making it harder to qualify for a loan.

Under the Privacy (Credit Reporting) Code, as currently enforced in 2025:

• Writs and summons are no longer allowed to be listed on consumer credit reports.
• Only judgments that relate directly to credit (e.g. unpaid loans or credit card debt) can appear on your file.
• Civil court actions that are not credit-related and do not result in a judgment cannot be included in your credit report.

This rule helps protect individuals and business owners from unfair credit file damage caused by legal claims that have nothing to do with their ability to repay a loan.

If a non-credit-related court action still shows up on your credit report, you have the right to challenge it with the credit reporting agency and request its removal.

What’s A Non-Credit-Related Judgment?

A person-to-person judgment is not credit-related.

As an example, if someone fails to pay their City Council rates, the judgment cannot be listed on their credit file, since the judgment is not credit-related and the City Council does not hold a credit license.

Another example is, if you were in dispute with your mechanic, they could still make a claim for the amount owed, but the information will not show up on your credit file since it’s not credit-related and they do not hold a credit license.

Judgments that are not credit-related should not appear on your credit file and are removable.

How Can I Remove Non-Credit-Related Judgments?

If a non-credit-related judgment is erroneously listed on your credit report:

• Obtain Your Credit Report: Request a free copy from major credit reporting agencies like Equifax, Experian, or Illion.
• Identify the Error: Confirm that the listed judgment is indeed non-credit-related.
• Contact the Credit Reporting Body (CRB): Notify the CRB of the error and request its removal, providing any supporting documentation.

Credit reporting bodies are obligated to investigate and correct inaccuracies in your credit file.

How Can I Remove Credit-Related Judgments?

Credit-related judgments are only removable if they are paid and if the plaintiff agrees to them.

You may be able to do it yourself if you have the know-how and the time, but for most, it is recommended that you seek a law firm (lawyer) specialising in removing judgments.

To remove a judgment yourself:

• Contact the plaintiff and ask them to sign a notice of consent. They usually only agree to this once they’ve been paid in full.
• You’ll then have to file them with the local court. It usually takes anywhere between a couple of days and 28 days. Depending on the state, there may be a fee between $0 and a couple of hundred dollars.
• The case will be reheard, it will then be stamped, sealed, and if satisfactory, it may be dismissed.
• The defendant will get a notification saying it’s been dismissed.
• Then, you’ll have to file that with all three CRB, i.e. Equifax, Experian and Illion.
• The judgment is then removed from your credit report, typically, within 10–15 days.

*This information was sourced from MyCRA Lawyers.