Did you know that you can borrow up to 95% of the purchase price by choosing a lender that doesn’t credit score?

Having a low credit score doesn’t mean you can’t buy a home and get a competitive interest rate.

Who will this work for?

  • You have a low credit score.
  • You have no credit history / you have never borrowed before.
  • You need to borrow up to 95% of the property value.
  • You have had a bad history with your current bank.
  • You have too many credit enquiries.
  • You have changed jobs recently.
  • You have moved house recently.
  • The location of the property / type of property is unacceptable to your bank.
  • You have a problem with your Equifax Score (previously VedaScore) or credit file with Veda Advantage and need to borrow no more than 90% of the value of the property.

If you qualify, then call our mortgage brokers on 1300 889 743 or enquire online and we’ll help you to get approved!

Who will this not work for?

We can’t help you if you fall into the below categories:

  • You have no savings. Why don’t you consider a guarantor home loan instead?
  • You have serious credit problems such as a default or judgment and you need to borrow over 90% of the value of the property.
  • You can’t afford the loan.

What if I have no credit score?

If you are new to Australia or a young adult who has never applied for credit then you will not have a credit file.

When you first apply for a loan your credit file will be created. However, because you have no credit history, this will cause you to have a low score.

In some cases it is best to apply for a small credit card several years before you intend to apply for a home loan, so that you have a credit file and credit score with a significant history.

If this isn’t possible then there are lenders that do not require you to have a credit history and can consider your application on its merits.

Which lenders offer low credit score loans?

There are several bank and non-bank lenders that do not credit score applications.

The rules vary significantly depending on the lender, so we usually work out which lenders you qualify with and then let you decide which one you would prefer to apply with.

We also have access to specialist lenders that can accept serious credit history issues as long as your loan is for no more than 90% of the value of your property.

If you have a problem with your credit history such as a default, judgement or court writ, it is likely that you will pay a higher than normal interest rate.

Are the interest rates higher?

In most cases we can help you apply for a mortgage with the same discounted rates available from the major banks.

This is because there are some second tier banks and non-bank lenders that either do not credit score or will use common sense to assess your application if your score is too low.

If your situation is more serious, then we may need to apply with a specialist lender who will have a more expensive rate. In most cases the price difference is not too significant and is likely to be similar to the bank standard variable rate.

What about my credit history overseas?

Australian lenders cannot normally view any overseas credit files.

For example if you move to Australia from the USA then your FICO score cannot be accessed by your Australian bank.

However in some cases NZ citizens can have their credit score in New Zealand checked by an Australian bank. This is due to some banks having a presence in NZ and Veda Advantage being in charge of the credit file databases for both countries.

This means that if you have just moved to Australia then you may have trouble getting a loan. There are specialist loans for temporary residents and new migrants which will allow you to get approved.

Apply for a mortgage

Please enquire online or give us a call on 1300 889 743 and one of our mortgage brokers will help you to work out which lenders you qualify with, and at what interest rate.

  • Abigail

    I’m a temporary resident from UK and want to get a mortgage here. My solicitor advised me that my credit score could be low since I am new for Australian banks, can I use my credit report from the UK which was quite good.

  • Hi Abigail,

    Lenders will go by your current credit report in Australia and would not consider your credit report from the UK.

    Not all lenders base their decision on your credit score, in fact there are some lenders who don’t credit score at all. It’s just a matter of figuring out which lender best suits your situation, and our mortgage broker may be able to assist you on this.

  • Balgruuf

    I don’t have any savings right now and a low credit score too. Will I get a mortgage or should I wait until I save enough?

  • Hey Balgruuf, we can’t help you if you have no savings. You can consider going for a guarantor home loan instead though. You can learn more about it here:

  • Jeremy JM

    What should I do to increase my credit score?

  • Hi Jeremy,

    The first step is to identify what is causing your loan to fail the bank’s credit score. You’ll find that fixing the weaknesses of your situation is more effective than improving your strengths. If you fix the wrong aspect of your situation then you will waste a lot of time and not get much result. Once you have fixed up any problems you can work on aspects of your situation that can improve your credit score, and in doing so you will maximise your chances of getting your home loan approved. Please check out the improve my credit score page for more info:

  • Rach

    If my partner goes for the loan in his name only is my credit rating taken into account with his loan?

  • Hi Rach
    You’re correct the lender would not assess your credit rating if you are not on the loan. However they may take your living expenses into account so they may decline his loan due to his borrowing power being reduced. This is because if someone has a partner who is not on the loan then the banks tend to assume they are financially dependent on the borrower.
    For a home loan there are some lenders that can ignore your living expenses if we can prove that you have a job or are otherwise financially independent.

  • Steen

    Hi, please provide the link to some of your testimonials / case studies on your clients so I can research a bit and see if there’s anything that applies to my situation.

  • Hi Steen, below is the link to the client stories section on our website. If you’re still not sure about something or you’d like to learn more, please feel free to contact us.

  • Ricki Nolan

    My wife and I both have low(ish) credit scores caused by credit enquiries, not defaults. We already own a block of land valued at $100,000+ but wish to build a transportable home at a cost of $245,000 plus connections and council costs. Do you have a lender who can help?

  • Hi Ricki,
    We can assist with the credit score issue however building that type of home is not acceptable to most banks. You need to fund construction yourself and the bank can only advance funds when construction is complete. If you build a regular home we can assist.

  • David rose

    I am a sole trader I have about $56,000 to go to pay off the first home I also own a block next door which I would like to join and make one block. I have the main house ranted and I wanty to build a new house about the size a granny flat two bed room.
    can you guys help plus all of this is out side cbd it’s in country nsw..
    thank you.

  • Hi David,
    Yes we can assist with this but we have a minimum loan size of $300,000. I’ll email you some options.

  • Ajay Singh

    I am building a house and i have paid 5% deposit and i have savings for another 5 to 6% as in down payment. Down part is i have 2 defaults which are already paid and closed but my wife has good credit history and we both going in loan. So what should i do? Who would you reckon will give us a loan? Thanks

  • Hi Ajay
    We have some lenders that can help with a 95% loan inclusive of LMI. That means you’d get 91% – 92% of the land value plus cost of construction after LMI is paid.
    Once you’ve got a clear credit history then we can refinance your loan to a mainstream lender. But until then you’d have higher repayments.

  • Nhlanhla Msumba

    I eatn $60000 gross partner earns $40000. We want to purchase a home for $650000 atleast, it can be an existing jome or new around campbelltown. We have seen a developer asking for $10000 deposit and pay the rest when they complete building . Would this make us at a strong borrowing capacity ? Would there be equity by time of application if the home we plan to buy is off the plan. All is required is $10000 and they start building

  • Hi Nhlanhla
    Assuming you have no children or debts then with your incomes you can borrow a maximum of $610,000. Although in all likelihood you may find that you can borrow less than this.
    Committing to buy a property in the future is dangerous as you are committing before you have loan approval. Approval is only valid for 3 months so if lending policy changes, the market moves or your situation changes then you may lose your deposit. The Sydney market may increase in value or it may not, it’s best to plan for the worst and hope for the best in these cases.
    If you buy an existing / complete property then you will be much safer as we can get formal loan approval before you commit to buy the property.

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  • Gilchrist

    I’m from the UK and have obtained my Australian permanent residency six months ago. I’m looking to purchase a property. I don’t have any credit record here in Australia so will it be an issue while applying for the home loan? FYI, I have my credit report with Experian UK and I have a score of 710.It’s a good score.

  • Hi Gilchrist,
    When you apply for a home loan, Australian lenders will check your credit score and it might come in low since you don’t have any recorded credit history in Australia. They won’t base their decision on your Experian credit score, sadly. In order to mitigate this, you could apply for a small credit card before you intend to apply for a home loan so that you have a credit file here and credit score.

    If this isn’t feasible for you then there are lenders that do not require you to have a credit history and can consider your application on its merits. Please enquire online https://www.homeloanexperts.com.au/free-quote/ or give us a call on 1300 889 743 and one of our mortgage brokers will help you to work out which lenders will consider your mortgage with no credit score.

  • Wheeler

    I lost my house about 3 years ago, my credit score was 535. I can’t afford to rent a comfortable home to live, so I need to apply for a home loan it was the most horrible and screwed moment of my life . I read about this credit coach on a credit score forum, how he had helped many people with their credit issues , I finally give him a try so I contact him via his gmail (cyberhack005). I wrote a letter for each thing on my credit report basically, and he gave me the assurance that he will fixed. I couldn’t believed this at first but a week later my credit which was low increase which I also confirm on credit reporting agency file. This is totally incredible i can now buy a home.

  • Mo

    My net weekly income is $1600. I am looking to buy property (new construction) worth $510k.
    I have 2 credit inquiries in last 6 month (personal loan and car loan). I have savings of $30k.
    My credit score is 450 equifax. No defaults or judgment. How much chances are for me getting approved for loan?

  • Hi Mo,
    450 is well below average so this is a major concern for most lenders. We’d need to look at your situation in full to find out why it’s so low as there may be other problems aside from your low credit score e.g. defaults / positive credit reporting repayment history issues / shopping pattern etc.
    We do have lenders that don’t credit score and can lend up to 95% of the property value however most of them won’t do construction loans. So if you can buy an existing property or a new property that isn’t being built then that would be better.

  • Mo

    I have paid deposit for land which is due to be titled in August. I have account with equifax and my score was 570. As soon as i got approved for personal loan my sc9re went down significantly. My all payments are on time and up to date for past 2 years.
    I am counting on my FHOG so that i can have deposit more than 5 percent.

  • Just to confirm is the $30,000 saved by you or is it from the personal loan? Some lenders are ok with this but many will believe you have borrowed your deposit and will decline the loan as a result.

  • Mo

    I have saved half of it. I needed to sent money oversease for medical expense of my mother. I put my property (overseas) on sale but i couldnt get buyer on time and i have had to get personal loan and send money to her. After i had no savings, i applied for personal loan hoping that i will pay it back when i will sell my property. I put down deposit for the land to secure it. Since its titling in August, i am planing to pay at least half of my personal loan account from the money i will get in next month from sold property overseas (i got sale agreement)

  • Hi Mo,
    We’d have to look at your situation in full to work out the best way forward for you. I’d recommend that for now that you don’t pay off your personal loan and instead keep the sale proceeds as additional savings. We can always pay off the personal loan later but if we put the money in the PL now and then take it out later then lenders may consider it to be borrowed.
    I’ll email you and cc one of our mortgage brokers in our team that specialises in this area of lending.

  • Sarah

    I am an Australian lady married to an American man returning home next year and we wish to buy a place. We are hoping to have AUD $100k to put down. We don’t have credit there as I haven’t lived and worked there since 2000. I read your entire website. What will we need to get approved? Work for 12 months first? Show savings? Is our large deposit sufficient enough to get approved without a waiting period? Please advise. Thank you.

  • Hi Sarah,
    I’m glad you liked our website. Thanks for reading.
    Australia’s credit reporting system (Equifax) is quite different to a FICO score, it focuses on negative data (defaults) rather than positive data (payments on time). We’re only this year bringing in positive credit reporting. So our lenders are comfortable with lending to someone who has no credit history in Australia. Sometimes we provide a copy of the overseas credit score as many other countries can provide in depth credit reports. However it usually isn’t necessary.
    A few tips to help you get ready to buy:
    1. Keep your savings in a separate account and add to it each month.
    2. Keep evidence of your previous jobs in the USA. E.g. end of year payment summaries, reference letters and the last few payslips.
    3. If your husband is not a PR of Australia (likely he’d be temp partner visa?) then it’s best to buy just in your name. Easier and cheaper. Some lenders will allow the loan to be in both names.
    4. Australian lenders have become very conservative with borrowing power. You may not be able to borrow what you’d like to.
    5. You’d only need to be 1 day in your new jobs to be ok to get a loan. You wouldn’t pay a higher rate because of your short term employment.
    Hope that helps and that you’ve trained your husband how to survive a drop bear attack.

  • Sarah

    Ha! Yes I’ve warned him of the perils of drop bears. :) I won’t be using any of my credit from the USA and he will be the primary bread winner. I don’t have too much income from here to speak of. I’m working, just not getting rich doing what I’m doing lol. We were hoping to have him working and both of us on the loan. When you say conservative, can you ballpark the amount? Say, if we did put 100k down? How much do you think they’d lend? We are not looking at a mansion. A new home , thinking a condo, would be great so we can get the first home buyers incentive I’ve heard about.

  • Hi Sarah,
    I can’t really give a ballpark figure for borrowing power because it’s a very complex calculation and we’d need to know your incomes in Aus.
    I’d say with $100k and both of you working in Aus then likely you should be fine. Just save our details because not every lender will allow a temp resident to be on the loan. We specialise in this area of lending so we know how to present your application to make sure it gets approved.

  • Sarah

    We won’t both be working. Just him. We don’t plan on daycare. Let’s say he earned $100k gross per year. Thanks.

  • Hi Sarah,
    Some lenders want to see both of you working to allow you to be on title and both of you to be on the loan. If your husband is on title then you may have to pay FIRB approval fees and foreign citizen stamp duty depending on which state that you’re in. So it’s best that you check with us at the time you apply. These policies change regularly.

  • Sarah

    It will actually be a permanent partner visa. We will wait to buy until he has that. I can’t believe they would be that inflexible regarding a traditional couple where the father works and the mother doesn’t. My dad is a US citizen living there and was married to my mother in Australia back in the 80s. They purchased homes no worries. She never worked. He’s not a citizen. Can’t believe it’s that much different now.

  • To cut a long story short the banking industry in Australia doesn’t use common sense. If he’s a PR then you’ll be fine.

  • Sarah

    Lol. Fair enough. Thank you for your help. Will reach out again when the time comes.

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  • Marilyn

    Hi there,
    I found out today that my credit score is 499 due to a bill I paid that was over 60 days overdue. Is it possible for an event such as this to reduce my credit score this much? I’ve been knocked back by CBA due to this, are there other options for me?

  • Hi, Marilyn,
    Yes, it is possible for an overdue bill over 60 days to significantly reduce your credit score. Also, too many credit enquiries in a short period negatively affects your credit score. A good option with a bad credit score would be to apply with lenders that do not have an issue with a low credit score.

  • Joel

    Hello ive applied for that many loans that my credit score is sitting at 28….
    66 enquires in total.
    Other then that there are no defaults against my name. Thinking of buying a house in 2021 any idea if my credit score will have recovered to an ideal number? By then

  • Hi Joel,
    Typically, credit enquiries will stay on your file for five years from the date they were lodged. However, after 12 months have passed credit enquiries do not significantly affect your credit score. So, if there no other adverse listings on your credit file except for those enquiries, your credit score should start to improve slowly after 12 months.

    So, yes, your credit score should improve enough by 2021 that it shouldn’t be an issue anymore. Lenders may ask for an explanation on the enquiries. Please note that the major lenders prefer if you only have one or two enquiries in the last six months prior to applying for a home loan.