Approval

Credit score and home loans

Understand how credit history, debts, repayment conduct, and lender policy can affect a home loan conversation.

Updated: 15 June 2026
Read time: 7 min read
Reviewed by: emoney broker team

Reviewed for general guidance. Reviewed by emoney broker team. Last updated 15 June 2026. Sources are listed below so borrowers can check the public references behind this general information before speaking with a broker.

Key checks before you decide

Income and expenses still matter.
Credit-card limits can affect borrowing capacity.
Deposit source and savings history may still be checked.
Lender policy can differ between lenders.
Recent missed repayments.
Defaults or disputed listings.

Full guide

Now read the full guide

Guide

Credit score is not the only factor

A credit score can help lenders understand risk, but it does not decide a home loan by itself. Lenders also review income, expenses, debts, credit limits, deposit, loan purpose, property details, and policy fit.

Two borrowers with similar credit scores can still have different outcomes because their income, liabilities, property, savings, and documents differ. This is why a calculator or credit-score result should not be treated as an approval answer.

The useful role of credit history is to show whether there are issues that need to be explained, corrected, or considered before an application is lodged.

Income and expenses still matter.
Credit-card limits can affect borrowing capacity.
Deposit source and savings history may still be checked.
Lender policy can differ between lenders.

Checklist

Conduct can matter

Credit reports can include credit products, limits, repayment history, missed payments, defaults, credit applications, and requests for the report. These details can affect how a lender views the application.

A lender may look differently at a one-off issue with context compared with repeated missed payments, high unused limits, or several recent applications. The details matter, and different lenders can have different tolerances.

If there is a known issue, raising it early is usually better than waiting for it to appear during lender assessment.

Recent missed repayments.
Defaults or disputed listings.
High credit-card limits or many accounts.
Several recent loan or credit applications.

Broker note

Check your report before a serious application

If you have applied for credit before, there is likely to be a credit report about you. Checking the report can help find errors or old issues before a lender reviews the application.

MoneySmart says Australians can access their credit report for free every three months. The report can show repayment history, credit products, credit limits, applications, defaults, and other information used in credit assessment.

If something is wrong or out of date, it can be raised with the credit reporting body or credit provider. Correcting errors before a home loan application can reduce avoidable friction.

Check that personal details are correct.
Check that debts and limits are yours.
Look for defaults, missed payments, or duplicate debts.
Ask how to correct errors before lodging.

Watch out

Do not pay for shortcuts without checking

Credit repair claims can be tempting, but wrong information can usually be fixed for free. Correct negative information generally cannot simply be removed because it is inconvenient.

Before paying anyone to repair credit, check whether the issue is actually wrong, whether it can be corrected for free, and whether the company is licensed. A broker can explain what a lender may ask about, but credit-report corrections need to go through the proper channels.

If repayments are becoming difficult, it may be better to speak with the lender or a financial counsellor early rather than lodging more applications.

Wrong information can often be fixed for free.
Correct negative information may remain on the report.
More credit applications can create more report entries.
Get help early if repayments are becoming hard.

Next step

Want a broker to check this against your situation?

Answer a few questions so emoney can route your enquiry to the right broker conversation.Discuss approval pathway

Broker note

Clean up the application story before lodging

A credit issue does not always mean there is no path forward, but it changes the preparation. The broker needs the issue, timing, reason, and supporting context before deciding which pathway to explore.

That context can include whether the issue was a mistake, whether it has been paid, whether it relates to hardship, and whether current repayments are now up to date. It can also include changes to income, debts, savings, or living expenses.

The aim is not to hide the issue. It is to avoid lodging an application before the pathway is understood.

Be upfront about known credit issues.
Collect evidence if a listing is incorrect or resolved.
Avoid making multiple applications without advice.
Review debts and credit limits before applying.

Example

Use borrowing estimates carefully

A borrowing power calculator can help estimate capacity, but it cannot read a credit report or decide lender policy. Use it as a planning tool before a broker reviews the full picture.

If the estimate looks tight, reducing unused credit limits, correcting report errors, building savings history, or waiting until conduct improves may be worth discussing. The right step depends on the borrower and lender policy.

For Emoney, the useful first conversation is a calm review of income, debts, credit history, deposit, and goal before the borrower relies on a number.

Include all debts and credit limits in calculator inputs.
Check report issues before pre-approval.
Ask what documents may explain the issue.
Use Quick Check to start the broker conversation.

Calculator next step

Borrowing power calculator

Estimate a practical borrowing range before narrowing a property search or pre-approval conversation.

Best for: Early budget setting before a buyer gets attached to a price range.
What it calculates: A rough borrowing range from income, expenses, debts, dependants, loan purpose, term, and rate assumptions.

A broker still needs to test income treatment, credit limits, deposit, property type, documents, and lender policy.

Open Borrowing power

Sources used

officialASIC MoneySmart credit scores and credit reports officialASIC MoneySmart credit repair officialASIC MoneySmart home loans officialASIC responsible lending obligations

General information only

This guide is general information and does not take into account your objectives, financial situation, or needs. A broker can review your circumstances before any recommendation.