To buy a house in Australia, most lenders prefer a credit score of 650-700 or higher, but approval is possible with lower scores (around 500-600), though options are limited and rates higher; excellent scores (700+) get the best deals, while below 500 is risky, but specialist lenders might help. Your score is just one factor, with income, expenses (serviceability), and loan type also critical.
Yes, a 700 credit score puts you in the "good" to "very good" range, making it very possible to get a $50,000 loan, though approval and rates depend on income, debt, and lender; you'll likely qualify for better terms than someone with a lower score, but still might not get the absolute best rates compared to scores over 740. Focus on lenders like online platforms or credit unions for better options, and pre-qualify with multiple lenders to compare offers without hurting your score, as lenders also check income and debt-to-income ratio.
Quick Answer. While a credit score of 650 falls in the "fair" range for FICO Scores® and the "near prime" range for VantageScore® credit scores, you can still qualify for some types of home loans. You'll likely have to pay higher interest rates, though.
Using this free income calculator, the approximate income you need to buy a $500,000 home, assuming you need a $400,000 loan, is $77,000 gross per year, excluding superannuation.
On a $100k salary in Australia, you might borrow between $330,000 and $600,000, but it highly depends on lender policies, interest rates, existing debts (car, credit cards), living expenses, and deposit size, with many lenders using serviceability buffers, suggesting figures closer to the lower end, while others might offer more if you have minimal expenses and debt. Use an online borrowing calculator from banks like NAB, CommBank, or ING for a personalized estimate.
If you want to increase your score, there are some things you can do, including: Paying your loans on time. Not getting too close to your credit limit. Having a long credit history.
Most of the time, there is no specific minimum credit score. The one exception is the FHA, which has a minimum score of 580 or 500 with a 10% down payment. That's not to say credit isn't important. Lenders may set their own mortgage approval requirements, which can have a significant impact on your interest rate.
That was helped, in part, by changing economic conditions and three consecutive rate cuts from the Federal Reserve, leading mortgage interest rates to hit 3-year lows multiple times in the final months of 2025. They've remained competitive in the opening days of 2026, too.
The 2-2-2 credit rule is a guideline lenders use to assess a borrower's creditworthiness, requiring two active revolving credit accounts, open for at least two years, with a history of on-time payments for those two consecutive years, often with a minimum limit of $2,000 per account, to show financial stability for larger loans like mortgages. It demonstrates you can handle multiple credit lines responsibly, not just have a good score, building lender confidence.
Yes, though rare, it is possible to have a 900 credit score. It represents exceptional creditworthiness and is a result of long-term financial discipline. An individual with this score has never missed a bill payment or defaulted on a loan and has consistently maintained their debt-to-income ratio.
However, transitioning from fair to good credit (700-749) might take a few additional years of responsible credit behavior. Reaching an excellent credit score (750 and above) is generally a long-term goal and may require at least five to ten years of consistently responsible credit habits.
Generally speaking, negative information such as late or missed payments, accounts that have been sent to collection agencies, accounts not being paid as agreed, or bankruptcies stays on credit reports for approximately seven years.
There isn't one single "most accurate" credit score in Australia, as the three main bureaus (Equifax, Experian, Illion) use different data and algorithms, but Equifax is often cited as very comprehensive due to its extensive data, including positive credit reporting (CCR). For the most complete picture, you should check reports from Equifax, Experian, and Illion, as lenders use these, and scores can differ significantly.
For most people, increasing a credit score by 100 points in a month isn't going to happen. But if you pay your bills on time, eliminate your consumer debt, don't run large balances on your cards and maintain a mix of both consumer and secured borrowing, an increase in your credit could happen within months.
How does my income affect my credit score? Your income doesn't directly impact your credit score, though how much money you make affects your ability to pay off your loans and debts, which in turn affects your credit score. "Creditworthiness" is often shown through a credit score.
For homes that cost up to $500,000, the minimum down payment is 5% For homes that cost between $500,000 and $1,000,000, the minimum down payment is 5% of the first $500,000 plus 10% of the remaining balance. For homes that cost over $1,000,000, the minimum down payment is 20% or more depending on property location.
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The "15" and "3" refer to the days before your credit card statement's closing date. Specifically, the rule suggests you make one payment 15 days before your statement closes and another payment three days before it closes.
Pay Off High Credit Utilization Debt
For borrowers seeking to improve their credit score, paying down high credit utilization debt should be a priority. When your credit cards are maxed out, your credit utilization ratio increases, which can lower your score.
After you pay off your debt, you may notice a drop to your credit scores. This happens because removing the debt affects certain factors affecting your credit score. These include your credit mix, your credit history or your credit utilization ratio. For example, paying off an auto loan can lower your credit scores.
For a $400,000 loan at 7% annual interest, the principal and interest monthly payment is approximately $2,661.21 for a 30-year term, while for a shorter 15-year term, it's around $3,595.31, with payments varying based on the loan's duration and any included taxes or fees, sayCredible.
What is the easiest bank to get a mortgage from in the UK?
FHA Loans, which will generally have among the lowest credit score and down payment requirements. VA Loans, which don't require a down payment or a minimum credit score—but do require active military duty or veteran status.