Home loans with a default or past credit issue

Last updated 3 November 2026 · Reviewed by 360 MMS Compliance

Can I get a home loan with a default?

It's possible. Our near prime and specialist loans are for borrowers with past credit events. A default doesn't stop an application on its own, but your income, expenses, deposit and the property still have to meet lending criteria. Your broker will assess your income and financial situation. Each application is assessed on its circumstances and lending criteria.

Which credit events can be considered?

Depending on the loan and your circumstances, our specialist loans may be able to consider:

• Defaults and judgements, paid or unpaid.
• Past mortgage arrears.
• Tax debts owed to the ATO (see below).
• A discharged bankruptcy.
• More than one credit event.

Eligibility criteria apply, and every application is assessed on its circumstances and lending criteria.

Are small or old defaults ignored?

It depends on the loan and your circumstances. Any default still appears on your credit file, and your broker will ask about it. Your broker will look at your full credit history and assess your income and financial situation.

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

It may be possible. We can help some 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. Each application is assessed on its circumstances and lending criteria.

Is a late payment the same as a default?

No. A late payment is a repayment made after its due date; a default is an overdue debt the credit provider has listed on your credit file. Your credit report can show both, and your broker will look at your full credit history, not just whether you have a default.

Does a past credit issue make a loan cost more?

Usually, yes. Near prime and specialist loans generally have a higher interest rate than prime loans. On some of our specialist loans, cash out is controlled: the money is paid for the purpose you've stated, not released to you. Your broker can tell you whether a clean-credit option is also worth looking at for your situation.

Can first home buyers apply?

Not on every loan. Some of our specialist loans aren't available to first home buyers, and some take residential property as security only. First home buyers with a past credit event may still have options, depending on the event and how long ago it happened.

FAQs

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.