Can you get a home loan if you have an ATO tax debt?

Last updated 14 November 2026 · Reviewed by 360 MMS Compliance

Can I get a home loan if I owe the ATO?

It may be possible. A tax debt doesn't stop an application on its own. Some of our loans can consider borrowers who have a tax debt, and how the debt is handled depends on the loan. Your broker will look at the debt as part of your overall financial situation, and every application is assessed on its circumstances and lending criteria.

Tax debts are common among self-employed people and business owners, whose tax isn't taken out of each pay. If that's you, our full doc and low doc home loans for self-employed borrowers may also be relevant.

Do I need to tell my broker about a tax debt?

Yes. Your broker has to make reasonable inquiries about your finances and verify what you tell them, and the loan has to meet your needs and be affordable for you. A tax debt is part of that picture, along with your other debts and expenses, and the lender looks at your credit history and all your debts, including any tax debt.

If you're on an ATO payment plan, give your broker the details. Telling them everything at the start helps them find loans that may fit.

Can I use a home loan to pay off my tax debt?

It depends on the loan. Some of our loans can't be used to pay out a tax debt, and your broker can explain what's possible for your situation. Other ways to deal with the debt include:

• An ATO payment plan: the ATO offers payment plans and other help if you can't pay on time. Its help with paying page explains the options.
• Refinancing a business tax debt: if your business owes the tax, 360 Asset Finance may be able to arrange a business loan to refinance it through a lender on its panel, subject to the lender's criteria. Its guide to refinancing an ATO tax debt with a business loan explains how that works.
• Your accountant or tax agent: they can confirm what's owed and help you compare the options.

Tax debt and a home loan: where do you start?

A general summary only, and not tax advice. Talk to your accountant or tax agent.

What does the ATO offer if I can't pay on time?

The main option is a payment plan, which lets you pay what you owe in instalments. In general terms:

• The ATO decides whether you're eligible and on what terms.
• The general interest charge keeps building on debts under a payment plan, so paying sooner generally means paying less interest.
• New tax still has to be lodged and paid on time, or the plan can default.
• Income tax and activity statement debts may need separate plans.

A payment plan sits alongside your home loan repayments, which is why your broker needs to know about it.

What are the pros and cons of applying with a tax debt?

Possible pros:

• Some loans are designed for borrowers with past credit issues, including a tax debt.
• Your broker looks at your whole situation, not just the debt.

Possible cons:

• Loans that can consider a tax debt can cost more than standard loans.
• Many loans can't be used to pay out the debt, so you may still be paying the ATO alongside your home loan.
• Some specialist loans aren't available to first home buyers.
• Criteria differ from loan to loan, so not every situation will fit.

How do I apply, step by step?

1. Confirm what you owe. Your accountant or tax agent can check your ATO account with you.
2. Look at the ATO's options. Such as a payment plan, and for a business debt, whether to compare refinancing it with a business loan.
3. Get a copy of your credit report. So you know what's listed.
4. Talk to your broker or our team. Tell them about the tax debt and any payment plan.
5. The assessment. Your broker will assess your income and financial situation and lodge the application. Our credit team assesses it against lending criteria before it goes to the funder for a decision.
6. The offer and settlement. If it's approved, you sign the loan documents. Keep up with your ATO payments as well as your loan.

How can 360 MMS help?

360 MMS is a mortgage manager. Its home and commercial loans are funded by wholesale institutional funders and arranged through accredited mortgage brokers or directly. We can help with:

• Borrowers with a tax debt: some of our loans can consider them.
• Other credit events: defaults and judgements, past mortgage arrears and discharged bankruptcy, depending on the loan.
• Self-employed borrowers: full doc and low doc home loans.
• Within the 360 group: 360 Asset Finance can look at refinancing a business tax debt through its lender panel, subject to the lender's criteria.
• Getting started: apply through an accredited mortgage broker, or contact our team directly.

FAQs

Sources and further reading:ATO: Help with paying · ATO: Payment plans · Moneysmart: Credit scores and credit reports

General information only. It doesn't take into account your objectives, financial situation or needs, and it isn't credit, tax or legal advice. All loans are subject to lending criteria, and fees and charges apply. Kuone Pty Ltd T/As 360 MMS (ABN 81 621 683 672), Australian Credit Licence 504193. 360 Asset Finance is a trading name of Kuone Consulting Pty Ltd (ABN 75 647 329 002), Australian Credit Licence 566705.